Most Employers Still Unprepared for ACA Forms Mandate

Despite ongoing attempts to challenge the Affordable Care Act (ACA), the U.S. Supreme Court again upheld the law, so the employer mandate still stands and requirements remain. And yet, more than 65 percent of our “Easy ACA for Employers” webinar attendees said they were not ready to file and furnish their 2015 ACA Forms, even though they are required by the federal law.

Silver lining for employers

On Dec. 28, 2015, the IRS announced an extension for the ACA reporting requirements for businesses. Notice 2016-4 extended the original due date for Forms 1095-B and -C from Feb. 1 to March 31, 2016, and Forms 1094-B and -C from Feb. 29 to May 31, 2016. While employers are given extra time to comply, the IRS is ready and willing to accept forms, and businesses are encouraged to file and furnish them as soon as possible, even if that is before the deadline.

2016 changes

Many organizations are still trying to get their reporting needs straightened out, but businesses also should be prepared for a number of significant changes that will occur this year. In addition to the extension, there are three main changes with which employers should be familiar.

  1. All Applicable Large Employers (ALEs), with 50-plus full-time or full-time equivalent employees, must now pay or play. Although these organizations were given transitional relief in 2015, they must follow guidelines in 2016. They still are required to file and furnish the Forms 1094/95 -B or -C.
  2. ALEs now must offer health care coverage to 95 percent of their full-time employees. This percentage went up from 70 percent in 2015.
  3. For 2016, employers facing fines for employees who qualify for subsidies through the exchange will be fined after their first 30 employees, not 80 as the law stated in 2015. The annual penalties for failure to comply are up to $3,000 per full-time employee receiving the credit or subsidy, or $2,000 per total number of full-time employees, whichever is less.

One thing that remains is that the employer mandate is here to stay. Because the ACA is constantly evolving, it is important employers choose an HR software provider that is privy to the latest changes and can handle all of the ACA’s complexities.

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Adding value to people and organizations is my mission in life. I am passionate about the role I play in Public Relations and Marketing and am proud of the value I have brought during my tenures at Paycom and the University of Oklahoma. As the PR Manager, I have helped bring attention to one of the top workplaces in the country, while also helping Paycom secure numerous accolades including: • The Inc. 500|5000 • Inc. Hire Power (recognizing companies that are leading the way in creating American jobs) • HR.com's Leadership Excellence Award (2014 and 2015) • Glassdoor’s Employee’s Choice Award as one of the five Best Medium-Sized Companies in the U.S. to Work for in 2014 and top 20 in 2015 • The Oklahoman’s 2013 and 2014 Top Workplaces & • The Build 100

jason bodin

Adding value to people and organizations is my mission in life. I am passionate about the role I play in Public Relations and Marketing and am proud of the value I have brought during my tenures at Paycom and the University of Oklahoma. As the PR Manager, I have helped bring attention to one of the top workplaces in the country, while also helping Paycom secure numerous accolades including: • The Inc. 500|5000 • Inc. Hire Power (recognizing companies that are leading the way in creating American jobs) • HR.com's Leadership Excellence Award (2014 and 2015) • Glassdoor’s Employee’s Choice Award as one of the five Best Medium-Sized Companies in the U.S. to Work for in 2014 and top 20 in 2015 • The Oklahoman’s 2013 and 2014 Top Workplaces & • The Build 100

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