Affordable Care Act Reporting Compliance

Due to compliance regulations imposed by the Affordable Care Act (ACA), employers now have annual reporting responsibilities concerning the health insurance offered to their full-time employees. The IRS has required the first of these new reports to be filed by early 2016 – organizations need to act NOW to avoid costly penalties.

Specifically for PeopleSoft customers, the ACA presents new challenges in the way they manage their workforce. For many organizations the ACA will create a new set of compliance risks, reporting responsibilities and increased complexities when it comes to understanding who is eligible for healthcare coverage.

The Affordable Care Act (ACA), or health care law, contains benefits and responsibilities for employers. Effective for calendar year 2015, employers must file an annual return in 2016 reporting what health insurance was offered to their employees. This rule was optional for 2014. Effective for calendar year 2015, if organizations provided health coverage to its employees, they must file an annual return in 2016 reporting specific information for each employee covered.

Applicable large employers (ALE) must file Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, with the IRS annually, no later than February 28 (March 31 if filed electronically) of the year immediately following the calendar year to which the return relates. This is the same filing schedule applicable to other information returns commonly filed by employers, such as Forms W-2 and 1099.

Also, ALE members are required to furnish a statement to each full-time employee that includes the same information provided to the IRS, regardless of whether the ALE actually offers health insurance coverage. This statement is required to be completed by January 31 of the calendar year following the calendar year for which the information relates.

ACA’s “employer mandate” is a requirement that all businesses with 50 or more full-time equivalent employees (FTE) offer health insurance to at least 70% of their full-time employees and dependents up to age 26, or pay a fee.

For a link to the IRS site detailing these changes

 

An Applicable Large Employer (ALE) member that fails to comply with the information reporting requirements may be subject to the general reporting penalty provisions.

 

  • The penalty for failure to file an information return generally is $100 for each return for which such failure occurs.  The total penalty imposed for all failures during a calendar year cannot exceed $1,500,000.
  • For returns required to be filed after December 31, 2015, the penalty for failure to file an information return generally is increased from $100 to $250 for each return for which such failure occurs.  The total penalty imposed for all failures during a calendar year after December 15, 2015 cannot exceed $3,000,000.
  • The penalty for failure to provide a correct payee statement is $100 for each statement with respect to which such failure occurs, with the total penalty for a calendar year not to exceed $1,500,000.
  • The penalty for failure to provide a correct payee statement is increased from $100 to $250 for each statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,000,000.  The increased penalty amount applies to statements required to be provided after December 31, 2015.
  • Special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to furnish a payee statement.

The clock is ticking and soon the penalties will begin to add up if organizations don’t act NOW. To assist your business in meeting these goals, BTRG will provide customers full integration in adapting to these new regulations. BTRG’s Affordable Care Act offering helps customers in a multi-phased approach.

  • Assessment Phase- Provide a data cleanse and a re-classification of employees
  • Installation Phase- Offer options for both PeopleSoft 9.1 and 9.2 customers.
    • For 9.1 customers- BTRG will first update, test, and configure the latest Bundle. Once Oracle releases the PeopleSoft ACA reporting Patch, BTRG will apply, test and migrate the Patch to production.
    • For 9.2 customers- BTRG will utilize the PeopleSoft Update Manager to apply, test and configure the Image release containing ACA reporting. BTRG will migrate the image to production and assist your team with understanding the reporting responsibilities and regulations.

Request More Info

As we meet with clients, we consistently hear concerns regarding the ACA and how their team will manage these changes during an especially busy time of the year. At BTRG we have developed the perfect mix of functional understanding with technical skill to walk your organization through these challenges. Call BTRG today to discuss how we can help eliminate the complexity of the affordable Care Act and get your organization ready for the future.

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