It’s a shift nearly six years in the making. For employers with over 50 employees, 2016 marks the first year that you join the list of applicable large employers (ALEs) in reporting employee information regarding healthcare and employee information to the Internal Revenue Service (IRS) under the provisions of the Affordable Care Act.
For employers failing to accurately report employer-sponsored health coverage in a timely manner, the $1.5 Million maximum fine should be a large enough reason for you to make sure that data is accurate and ready to be reported.
As employers look to finalize their reporting and planning strategies, Employee Benefit News provided, in a recent ACA reporting slideshow, five actions that employees can take now to prepare for complete and accurate reporting under the ACA.
1. Review the Requirements
The IRS issued drafts of the 2015 forms that will be used to report health care coverage, which enable companies to better understand the specific reporting requirements.
The updated forms include space devoted to detailing covered individuals to avoid the use of multiple 1095-C forms for larger families.
2. Identify your ACA Fulfillment Team
For many companies, it’s confusing who leads the ACA reporting team: benefits, payroll or HR?
The best idea, according to the article, is to create an ACA fulfillment team with key members from each of these departments.
3. Gather Data
Ensuring that your fulfillment team can gather data from across all departments is necessary to provide complete and accurate reports.
Some of the information employers need to provide includes:
- How many full-time employees your organization employs each month.
- Identifying information for employees (name, SSN, address).
- The months that the employee was offered health care coverage.
- The employee’s share of the lowest cost monthly premium for self-only minimum value coverage.
4. Prep the Data
Do you have the right Social Security numbers for your employees and their dependents? If you have data coming from multiple systems, you’ll need to join this data together.
5. Track Monthly Changes
Don’t wait until December to collect all of the necessary monthly employee and health care information. Identify your full-time employees for each month and their health care coverage details now so you will have time to verify the information and make any necessary corrections before the filing period.
Why Data Matters in ACA Compliance
In a recent Brittenford webcast, special guests Ted Trevorrow, Certified Health Insurance Navigator and ACA expert, Hartmuth Csandi-Schwartz, Director of Business Operations of a Maryland-based association and Keith Schmidt, Account Executive at Integrity Data shared the important factors in ACA readiness.
In this webcast, guests introduced common challenges, insights, and success stories surrounding ACA reporting and data availability, as well as results from a recent survey completed by Brittenford.
Looking for even more? Check out how to integrate payroll and accounting in another recent webcast.