As the New Year approaches, employers are gearing up for another wave of changes from the Affordable Care Act (ACA). With just a few more provisions left to go into effect, employers are starting to feel the pressure in order to comply with the requirements of the health care reform law.
Here are three important things your business will need to know about the ACA for 2016.
- Employer shared responsibility mandate.Employers with 50 to 99 full-time employees and full-time equivalents (FTEs) already were required to comply with the employer shared responsibility mandate, also know as “pay or play,” in 2015. Starting January 1, 2016,employers with 50 or more employees will be required to offer minimum essential coverage to at least 95% of their full-time employees and their dependents, or else pay a penalty.
- Information reporting requirements. The new year is the first time employers with 50 or more employees and FTEs will be required to file information reporting forms to the IRS about their compliance with the “pay or play” provision. The deadline to furnish employees a copy of their 1095-C form is February 1, 2016. The deadline to file all employee forms using the transmittal form 1094-C is February 29, or March 31 if filed electronically.
- The Cadillac tax. Recently, there has been a lot of discussion surrounding the Cadillac tax, which is scheduled to go into effect in 2018. The proposed 40% excise tax will impact employers whose high-cost health plans exceed an established annual cost. It’s estimated that a third of employers will be subjected to the tax by 2018, and that 60% of employers will be impacted by 2022. The National Association of Health Underwriters (NAHU) is encouraging employers to take action to tell their federal legislators to pass a repeal of the Cadillac tax before the end of 2015.
For more information on the Affordable Care Act and how it will impact your business in 2016, contact Jennifer Krog, our PPACA certified agent, at 508-347-6850 or firstname.lastname@example.org.
*This article is written for informational purposes only and should not be construed as providing legal advice.