Use Effective Communication to Stop Confusion about Employee Affordable Care Act Reporting
As you are probably aware, new Affordable Care Act requirements begin this tax year (2015). This year, Applicable Large Employers (ALE) with 50 or more full-time, or full-time equivalent, employees are subject to the employer shared responsibility provision and the related IRS reporting requirements. That means that for the first time ever, in 2016 ALEs will need to file Forms 1094-C and 1095-C with the IRS. They will also need to send Form 1095-C to their employees for them to report information about the health insurance coverage offered under their employer-sponsored plans for the 2015 tax year.
You may already have plans in place on how to handle the company reporting requirements (be in outsourcing or in-house), but have you fully developed a plan to educate your employees on their part of the burden? Without a good communication plan, you could end up with a lot of employees who are confused about what Form 1095-C is, when they should receive it and what information they need to provide for it.
Here are three questions to ask when constructing your communication plan for your employees surrounding the Affordable Care Act 1095-C forms:
It is critical that you communicate to your employees exactly what Form 1095-C is, so you can eliminate confusion and cut down on follow up tasks that accompany misunderstanding, such as questions and form reruns. Inform your employees through clear, concise and thorough communication, so they know what the form is and what they are responsible for.
- How will they hear about Form 1095-C? You should determine the medium for informing your employees about Form 1095-Cs. what channels do your employees like to receive information best? Is it the company intranet, emails, posters, meetings or videos? Choose the options that have worked best in the past and be prepared to deliver the message in multiple ways, over multiple platforms. You should expect that employees only truly understand a message once they have received it multiple times and in multiple ways. Some employees learn differently than others, so consider mixing up the ways that the information is presented. You may want to start with a meeting announcement, follow with a quick video and finish with a message that is glued to the company intranet.
- Over what time period will they learn about the form? Your employees will need to be fully in the know about Form 1095-C come January 2016. You will want to decide a time frame for knowledge rollout that allows for plenty of time for employees to understand before they get their forms. A phased process starting in the fall will probably suit you best. Here is an example of an education roll out plan:
- November: Introduce the concept at high-level. You may want to add it to your company intranet or write an article in an employee newsletter. You will want to mention what the form is and what you need to do with it.
- Early December: Give more details. Send a direct email message to employees along with the usual end of year notifications. Include a link to more information about the form.
- Late December: Spread the word. Hang informative posters scattered throughout the office and in break rooms. Have some fun with this and make them eye-catching!
- January: Remind Employees. Send out a reminder email for employees to keep an eye out for the forms coming in the mail.
- February: Follow up. Send an email to employees informing them that they should have received their forms. Include instructions on who to contact if they did not receive their form.
- What messaging will they receive about the form? You will want to keep your messaging concise, to the point and direct. You will need to educate your internal team as well as your employees themselves. Your internal team will need to help inform your employees about the form and their responsibilities, so you will all want to be on the same page. Here are some examples of what your key messaging should sound like:
- Keep an Eye Out for Your Affordable Care Act Form 1095-C
Around February 1st, you will receive the new Affordable Care Act Form 1095-C in the mail. The tax form is designed to report whether your employer offered you minimum levels of affordable health care in compliance with Affordable Care Act regulations.
- What Do I Need to Do?
The Form 1095-C will arrive in your mailbox around February 1, 2016. It contains information you may need to report as part of your income tax submission for the 2015 tax year. You will need to complete the form.
Learn how EPAY Systems can help you manage your Affordable Care Act compliance and ease your HR workload with EPAY’s human capital management platform. Contact us to learn more.