February and March will be here before you know it, bringing with them important deadlines for ACA reporting. Forms 1095-B and 1095-C are due by February 1, 2016. If you file paper forms, the deadline for Forms 1094-B and 1094-C is February 29. Filing electronically provides a larger window for compliance—that deadline is March 31. Now is the time to prepare.

How to Determine if You Should Pay or Play

50-99 FT/FTE employees

Here are some facts to consider when deciding how you will respond to ACA requirements. If you have 50-99 employees, you will not incur a penalty if you meet certain requirements:

  • Will you offer coverage to 95% of employees who work at least 30 hours per week?
  • Will it cover at least 60% of covered health care expenses for a typical population?
  • Will the employee contribution be under the 9.6% of annual salary (the affordability test)?

If the answer to these questions is “yes,” the employee can buy individual coverage in an Exchange and you incur no penalty. If you answer “no,” you are liable for a penalty of up to $2,000 per FT employee minus 80 in 2015 and minus 30 in 2016. This penalty will increase each year as insurance premiums increase.

100 or more FT/FTE employees

The formula is simpler here. In 2015, you must offer coverage to 70% of FT/FTE employees in 2015 and 95% of eligible employees in 2016 who work at least 30 hours per week. Failure to do this incurs a penalty if even one employee received a premium tax credit or a cost sharing subsidy in an exchange. The penalty is $2,000 per full-time employee minus 80 in 2015 and minus 30 in 2016. This penalty will increase each year as insurance premiums increase.

How MWA Calculates Your 1095-C

My Workforce Analyzer (MWA) simplifies staying compliant with ACA requirements. Using data within your HR Payroll system or imported from Payroll/HR if you are using one or the other, MWA determines how many forms need filed, generates them, and populates the necessary fields. It pulls over the employee share for the lowest cost plan (not necessarily the plan they are using) and, if you are a self-insured employer, it populates the dependents’ information.

Once the forms are filled-in for each employee, MWA prints them into the system placing them in a data folder in the “ACA Reporting” folder. The forms are in a fillable PDF format so information can be edited if necessary. These forms can be printed and distributed to employees at no charge.

MWA will also generate electronic forms and send them to Aatrix for electronic filing with the IRS. If you have over 250 forms, electronic filing is required. Even if you don’t have that many employees, electronic filing is fast and efficient.

Streamline the ACA Reporting Process 

Are you ready to make life easier for your HR professionals? Are you ready to relieve the stress of tracking variable time employees’ eligibility and ensuring compliance with timely reporting to the IRS? Take a closer look at MWA and see how it can help you do this, and more, for your business.

 

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Many employers are now scrambling to figure out how to generate the required 1094 and 1095-C forms required for the Affordable Care Act that must be issued to employees by February 1, 2016 and filed with the IRS by either February 29 or March 16, 2016 if filing electronically. Learn about how My Workforce Analyzer can help you generate the correct forms and stay compliant.

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Joe Rotella, SPHR, SHRM-SCP
Joe Rotella, SPHR, SHRM-SCP
Chief Marketing Officer at Delphia Consulting
Joe is a leading thinker and a professional speaker in the areas of HR technology, marketing, and web usability. He is a well-recognized speaker for the Society of Human Resources Management.