Comply with the ACA’s Employer Shared Responsibility Rules
The employer shared responsibility provision went into effect this 2015 calendar year. Constant coordination and communication between HR managers and payroll is needed in order to ensure accuracy in reporting requirements and payroll data.Here are five ways to ensure accuracy in order to avoid penalties:
- Keep track of reporting time periods
- Choose a look-back period of three months to one year
- Coordinate with HR for accurate reporting
- Complete Forms 1094C and 1095C for end of the year reporting for the 2015 tax year. Get information for employer status, coverage affordability, and eligible employees.
- Provide correct information for hours worked
- Employee service hours are used to determine the full time status for the stability period, and ensure data provided covers the time period. Determine employer status and full time employees. Take note of personnel changes that affect employee’s full time status.
- Offer the right health care coverage
- Make sure affordable coverage is offered to full time employees and dependents in order to avoid penalties.
- Determine affordability
- Affordable health care under employer shared responsibility is coverage that does not cost over 9.5% of employee’s annual household income. Determine affordability through Form W-2, employee salary, or hourly rate information.
HOW ASHTON CAN HELP YOU
With Ashton Benefits’ free online platform, gathering accurate data for reporting requirements can be made easy. Ashton clients receive our system that tracks the correct information. Manually tracking information about your employees without it would be a nightmare. Your company can easily access and update data from your payroll, health insurance, and HR systems all online, in one place. Ashton Benefits is here to help you to remain compliant.