Affordable Care Act Reporting
Ahola can take the Stress out of ACA Reporting. Contact us Today to get your ACA Reporting Underway.
The Affordable Care Act places certain data reporting requirements on employers, with critical deadlines the first quarter of 2018 that are fast approaching. The applicable 1094 and 1095 forms must be provided to employees by January 31 and filed with the IRS by February 28 (paper filing) or March 31 (electronic filing). The IRS will use these forms to determine employer shared responsibility and affordable minimum essential coverage, so having data accurate and readily available is critical.
Ahola can help you with the required forms, including 1094 and 1095 B/C.
3 Key Things you Need to Know about your Company for ACA Reporting:
Are you Self-Insured?
Self-funded health care also known as Administrative Services Only (ASO) is a self insurance arrangement whereby an employer provides health or disability benefits to employees with its own funds. This is different from fully insured plans where the employer contracts an insurance company to cover the employees and dependents. In self-funded health care, the employer assumes the direct risk for payment of the claims for benefits. The terms of eligibility and covered benefits are set forth in a plan document which includes provisions similar to those found in a typical group health insurance policy. Unless exempted, such plans create rights and obligations under the Employee Retirement Income Security Act of 1974 (“ERISA”).
Are you an ALE (Applicable Large Employer)?
An applicable large employer is an employer that employed an average of at least 50 full-time employees on business days during the preceding calendar year. A full-time employee generally includes any employee who was employed on average at least 30 hours of service per week and any full-time equivalents (for example, 40 full-time employees employed 30 or more hours per week on average plus 20 employees employed 16 hours per week on average are equivalent to 50 full-time employees).
Are you a member of a Controlled Group?
There are three types of controlled groups that are considered one employer for the purposes of the ACA employer mandate. The IRS defines, and provides example of, these three controlled groups in IRS Code § 414 (b) and 414 (c).
1. Parent-Subsidy Group: When one or more businesses are connected through
stock ownership with a common parent corporation (such as a chain); and
- 80% of the stock of each corporation (except the common parent) is owned by one or more corporations in the group, and
- Parent Corporation must own 80% of at least one other corporation.
2. Brother-Sister Group: A group of two or more corporations, where five or
fewer common owners own directly or indirectly a “controlling interest” of
each group and have “effective control”. A common owner must be an individual,
a trust, or an estate.
- Controlling interest: Generally means 80% or more of the stock of each
corporation (but only if such common owner own stock in each
- Effective control: Generally more than 50% of the stock of each
corporation, but only to the extent such stock ownership is identical with
respect to such corporation.
3. Combined Group: A group consisting of three or more organizations that
are organized as follows:
- Each organization is a member of either a parent-subsidiary or brother-
sister group, and
- At least one corporation is the common parent of a parent-subsidiary,
and is also a member of a brother-sister group
In order to meet the 2017 reporting requirements, employers should already be compiling and analyzing data now to determine coverage and affordability. Required data collection includes:
- Aggregate group membership tracking
- Total employees
- Total FT employees
- Total months covered
- Whether minimum essential coverage was offered, is affordable and meets minimum value
- Employee information including
- Social Security Numbers or birth dates.
Contact us today to start your ACA reporting process.