No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights
Home Compliance

Alleviating the Burden of the ACA for Small and Mid-Sized Businesses

by Maria Black
December 4, 2015
in Compliance
Alleviating the Burden of the ACA for Small and Mid-Sized Businesses

With 2016 quickly approaching, employers should be preparing for reporting requirements under the Affordable Care Act (ACA). From documenting the offer of health care coverage to all eligible full-time employees (FTEs)—those who work 30 or more hours a week—to reporting hours worked for all employees, businesses have a lot on their plate. And with the introduction of Forms 1094-C/1095-C by the IRS, it may get even more challenging.

Moreover, 2016 means that, under the ACA’s “Employer Shared Responsibility” mandate, all Applicable Large Employers (ALEs)—those that employ 50 or more FTEs—will need to prove they have offered “affordable” health insurance coverage to eligible employees or risk facing significant fines. While large companies may have the resources to take on this task, many small and mid-sized business owners need help navigating the complex health care landscape.

In fact, according to ADP research, more than four in 10 small business owners surveyed believe that benefits administration has become more complex. A few (one in seven) are more likely to outsource benefits administration to help protect their organization from costly penalties.

One way to help alleviate this burden is to partner with a Professional Employer Organization, or PEO. Specifically, PEOs provide businesses with a co-employment model where they retain the day-to-day managerial control of employees, but the PEO’s compliance and risk experts help by managing tasks associated with HR and employee benefits—allowing employers to focus more on growing their business.

So, what can this mean for ACA compliance efforts? A PEO can accurately track and report data for each employee to help business owners stay in compliance. Additional ACA-related responsibilities with which a PEO can help include:

  • Assisting with determining ALE status and measurement period: Some employers may be unsure if they’re considered an ALE under the ACA definition, but all employers should confirm their status as soon as possible. Why? Because all ALEs are required to provide minimum essential coverage to their full-time employees or risk facing “Employer Shared Responsibility” penalties. But ALEs don’t have to figure it out alone. In fact, PEOs can assist in identifying the correct look-back period to determine if coverage was offered to all eligible employees—ensuring the information is properly tracked and recorded to meet ACA compliance requirements. In addition, because PEOs have access to payroll and benefits information, they can also help employers verify whether the coverage they offered was considered “affordable” under ACA mandates, as well as if it met the criteria for minimum essential/minimum value coverage.
  • Supporting 1094-C/1095-C IRS reporting: In 2016, the IRS will require ALEs to file a Form 1094-C, which is a report demonstrating they’ve offered health care coverage to 70 percent of eligible employees in 2015 (95 percent in 2016). In addition, the Form 1095-C must be furnished to employees at the same time as the Form W-2, and employers must file the Forms 1095-C with the IRS. By working with a PEO, ALEs can get help with completing, printing and distributing the 1095-C forms to employees, as well as filing both forms with the IRS.
  • Reviewing and managing Exchange notices: In the event an employee seeks subsidized medical coverage from a state or federal health insurance marketplace and their employer receives a notice from that marketplace, a PEO can review and research the situation to recommend and assist in developing the best response for the employer. Specifically, if an employer does not offer minimum value, affordable coverage to 70 percent of its full-time employees in 2015 (or 95 percent in 2016) and one of those employees seeks an advanced premium tax credit from the marketplace, the employer could be subject to a non-tax deductible penalty of approximately $2,000 for every employee.

For small and mid-sized businesses, the health care landscape continues to evolve. PEOs can help businesses avoid common ACA pitfalls while giving them more time to focus on building their business and remaining competitive. And for those employers not considered an ALE? Partnering with a PEO can still be beneficial, providing support for Summary of Benefits and Coverage (SBC) distribution and Form W-2 reporting.


Tags: Affordable Care Act (ACA)
Previous Post

ADP Solution Helps Businesses Comply with Wage & Hour Laws

Next Post

Identify and Manage Your “Trust Positions”

Maria Black

Maria Black

Dec 4 - Maria Black headshotMaria Black is President of ADP TotalSource®, the largest Professional Employer Organization (PEO) in the United States. TotalSource provides HR outsourcing, payroll, benefits administration and overall human capital management (HCM) solutions to small and mid-sized U.S. businesses. Maria is responsible for all aspects of the business unit, including marketing, strategy, service, operations, product, finance and HR.

Related Posts

A boiling kettle is viewed head on.

These 4 ACA Compliance Kettles Are Brewing in D.C. If They Boil Over, Your Business Should Be Ready.

by Kyle Scott
August 24, 2021

Enforcement shifts are rumbling in Washington regarding a section of the Affordable Care Act. New actions could find your business...

a stethoscope hangs over a yellow background

Pandemics and Politics: 3 New ACA Challenges and 5 Steps to Avoid Penalties

by Kyle Scott
May 11, 2021

ACA good faith reporting standards sunsets this year. The American Rescue Plan has added further complexities. Make sure you are...

illustration of businessman running in clock

5 Steps to Reduce Risk of IRS 226-J Assessments

by Kyle Scott
September 9, 2020

Even during the unprecedented workforce upheaval of 2020, the IRS continues to assess potential Affordable Care Act (ACA) employer penalties....

yellow "open enrollment ahead" sign posted on road in autumn

Open Enrollment: Engaging, Educational, Compliant?

by Melissa Maher
November 5, 2019

An important (though often overlooked) aspect of open enrollment is compliance. Buck’s Melissa Maher offers steps compliance and HR professionals...

Next Post
Identify and Manage Your “Trust Positions”

Identify and Manage Your “Trust Positions”

Compliance Job Interview Q&A

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Code of Conduct Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime Financial Crimes Enforcement Network (FinCEN) GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring RegTech Reputation Risk Risk Assessment SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2022 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe

© 2022 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT