It’s year end and there are a number of last-minute items to ensure compliance with the Reporting Requirements of the Affordable Care Act – 1094/1095 Forms. First, all Applicable Large Employers must file. Although this one seems like common sense, many employers are still trying to determine the reporting requirements. The Internal Revenue Service (IRS) has noted that penalties for the first year will be reduced or inexistent for those employers that have made a “reasonable effort” to file. Filing is the best defense against penalties – even if unsure about the coding, the requirements, the safe harbors, or the certifications.
Second, employers must report for all Full Time Employees (“FTEs”) and anyone enrolled in coverage. As such, it is very important to analyze employees’ hours, properly determine the measurement periods, and document all information used to make these assessments. This includes payroll reports, look-back measurement or monthly measurement used, and the application to new hires and continuing employees. Finally, review employee leave and classify leave accordingly. Remember vacation and sick pay and any hour of service where an employee earns pay or service is used to calculate average work hours.
Next, consider the affordability safe harbors. Make sure you have analyzed the best method available and have properly used the 2015 affordability percentage of 9.56%.
Finally, don’t forget to include your COBRA (Consolidated Omnibus Budget Reconciliation Act) employees. Under the reporting requirements, the employer must report COBRA participants that received COBRA as a reduction in hours. As always, contact USI if you have any questions about ACA reporting requirements.