What Employers Need to Know for ACA Reporting
Affordable Care Act (ACA) Reporting Deadlines Just Around the Corner
it is important that employers understand their roles and responsibilities to stay compliant and avoid financial penalties. With a constantly evolving conversation around the Affordable Care Act (ACA), many employers were
wondering if reporting was going to stay or go.
On Dec. 22, 2017, President Donald Trump signed into law the tax reform bill, called the Tax Cuts and Jobs Act , after it passed both the U.S. Senate and the U.S. House of Representatives. This tax reform bill makes significant changes to the federal tax code. The bill does not impact the majority of the Affordable Care Act (ACA) tax provisions. However, it does reduce the ACA’s individual shared responsibility (or individual mandate) penalty to zero, effective beginning in 2019. As a result, beginning in 2019, individuals will no longer be penalized for failing to obtain acceptable health insurance coverage.
Individuals continue to be required to comply with the mandate (or pay a penalty) for 2017 and 2018. A failure by employees to obtain acceptable health insurance, or by employers to offer acceptable (affordable) coverage for these years may still result in a penalty for the individual and/or the employer.
As health coverage has expanded under ACA, employers have experienced the increasing burden of reporting to the Internal Revenue Service (IRS), which uses a host of tax forms to ensure certain rules are met. In addition, the federal government continually looks to refine regulations. Therefore, employers and human resources departments must not only be aware of the ACA’s basic rules, but they must also stay vigilant in understanding the constantly changing landscape.
According to The Commonwealth Fund Affordable Care Act Tracking Survey, the gains in health insurance coverage made since the Affordable Care Act (ACA) passed in 2010 are now beginning to reverse. ACA enrollment has declined and insurance coverage seems to be worsening year over year.Read More >