Simple ACA Rules for Simple (But Not Small) Employers

by Balch & Bingham LLP
Contact

You’re an ACA “Applicable Large Employer,” but not by much. You have three executives, none of whom has any HR or benefit plan expertise. You rely on a local payroll service and your insurance agent. You hope they are on top of things, but you worry. You should worry. Generalizing greatly for simplicity’s sake, here are some icebreakers you might use to open conversations with your advisers.

50 to 100 Employee Transition Relief

If you had at least 50 but less than 100 full-time employees (on an aggregated basis, including full-time equivalents) in an average month in 2014, then you are an ACA “Applicable Large Employer” with ALE reporting obligations (Code § § 6055, 6056) and employer mandate tax exposure (Code § 4980H). However, if you properly file your Forms 1095-C and 1094-C by February 29, 2016, and check Box C on Form 1094-C, you may be granted “transitional relief” from the employer mandate taxes that accrued in 2015 if you failed to offer affordable, qualifying coverage to all your full-time employees and their dependents.

If your 2014 average month’s full-time employee number was 100 or more, you are not eligible for this relief and it’s too late to get small.

2015 Coverage Offer Reporting

The only employers exempt from this are small employers with no group health plans and small employers with only fully-insured group health plans. Small, self-insured employers report under Code § 6055. All Applicable Large Employers report under § 6056 and, if self-insured, also have obligations under Code § 6055.

By February 1, 2016, you must furnish a Form 1095-C to each person who was your ACA full-time employee in any 2015 month. By February 29, 2016, you must file all those Forms 1095-C with IRS (March 31 if filing electronically), along with a Form 1094-C cover sheet. You’re unlikely to be able to do this without IT tools that have been developed by TPAs and benefit plan consultants over the past year. Some of them are requiring that system installation, configuration, data loading and testing be completed by October 15, 2015. If you haven’t engaged one of them yet, prioritize this project. You will not appreciate how much work must be done until you start doing it.

The 2015 Forms and Instructions will be published, we hope, in September 2015. Here are the 2014 links:

Form 1094-C ;

Form 1095-C ;

Instructions.

State and Local Government Employers and Plans

The most thoroughly busted ACA myth may be the rumored exemption of state and local government employers and their group health plans. There are important ERISA exemptions for such plans but ACA employer mandate taxes and coverage offer reporting requirements are fully applicable. They are enforced independently and may be financially significant. Want to get some attention from your higher-ups? Ask from what accounts the accruing taxes and penalties are to be paid beginning in mid-2016.

Written by:

Balch & Bingham LLP
Contact
more
less

Balch & Bingham LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.