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QUESTIONS AND ANSWERS
You've asked questions. We have answers.
What is the best way for me to protect my business from Employer Shared Responsibility penalties? ACA reporting and compliance may seem daunting. It doesn’t need to be this way. Yes, employers need to track, compile, and/or report on employee eligibility and benefit information. Once you understand ACA reporting and compliance, it really isn’t that bad. Work with a trusted advisor to determine your requirements and to help you vet the right solution based on your situation.
We are considering dropping coverage and paying the "No Offer" penalty. Any suggestions? This may or may not be the best solution for your situation. Further analysis and modeling may be warranted. For example, there are certain situations when an employer may have over 50 FTEs and yet the employer can bypass any jeopardy of paying a shared responsibility payment. Creative solutions may also be available to help you to maintain benefits in order to retain and recruit top talent for your organization.
Do I have to pay for health insurance coverage to avoid a penalty? You are not required to offer coverage nor pay for it. However, if you are considered a "large employer" and do not offer coverage that is considered "affordable" or does not provide "minimum value" to at least 95% of your full-time employees and their dependents (2016) you may be responsible for a "shared responsibility payment". The penalty is $3,000 annualized for each full-time employee who receives a premium tax credit or cost sharing subsidy through the state insurance exchange. The penalty however, will never be more than if you had not offered coverage at all. The enforcement of the penalty was delayed for 2014-2015. We anticipate changes in 2016/17 due to the 2017 presidential change.
When is 1094-1095 reporting due in 2017? The IRS extended the deadline to deliver ACA reporting forms to employees from Jan. 31, 2017 to Mar 2nd. The extended deadline applies to furnishing the Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) to individuals and Form 1095-B (Health Coverage) for the 2016 tax year.
Feel free to reach out to discuss your current situation. We understand the provisions and are ready to help.
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