How EPAY Can Help You Avoid Common ACA Reporting Mistakes
As a result of the Affordable Care Act (ACA), all Applicable Large Employers are required to provide health coverage for their full-time or full-time-equivalent employees. This means employers now face even more compliance risk and penalty exposure. And with the complexity of the ACA reporting requirements, employer mistakes are likely.
Luckily, EPAY’s ACA Compliance and Reporting Package can help ease your ACA reporting burden and help you avoid common reporting mistakes like these:
Common Affordable Care Act Reporting Mistakes
- Not properly reporting for employees covered by multiemployer plans.
Applicable Large Employer members must report under Section 6056 for their full-time employees qualified for a multiemployer (union) plan, even though the employer is not directly offering those employees coverage. ALE members are accountable for any penalties ensuing from improper reporting. The IRS has created special coding for employees covered by a bargaining until that has negotiated participation in a multiemployer plan. That said, employers must confirm the multiemployer plan meets certain criteria before they are eligible to use the multiemployer plan coding.
- Not properly reporting for employees working for multiple employers within the same controlled group.
Employers are required to issue a Form 1095-C for any person who was a full-time employee at any point during the year. But, if an employee is working part-time for two related employers, that person’s hours must be aggregated determining whether he worked “full-time.” Further, related employers must collaborate to determine who will “claim” that full-time employee for the month, as the employee would only be considered the full-time employee of the employer he worked the most hours for.
- Not properly reporting waivers of coverage.
In cases where an employee waives coverage, it is still the responsibility of the employer to report information regarding the coverage offered, so the IRS can decide whether an individual or employer penalty may apply. There is no specific code that applies when an employee waives an offer of coverage, so it is recommended to examine the other codes to see if one may apply. For example, if the employee waived coverage but that coverage was affordable based on an IRS affordability safe harbor, you should use the corresponding code for the safe harbor.
These are just a few of the common Affordable Care Act reporting mistakes. Unfortunately, the complexities of the ACA reporting requirements mean employers make a lot more mistakes. Download the infographic Top 10 ACA Reporting Mistakes to learn 7 more mistakes to avoid for next year’s ACA reporting.
EPAY Can Help—Introducing the Affordable Care Act Compliance Solution
Avoid the headache of ACA reporting, and let EPAY Systems handle it this year! We’re offering a special ACA Compliance and Reporting package to help you avoid these common ACA reporting mistakes.
Our compliance and reporting package includes:
- Unified time & attendance, payroll, and benefits technology
Track employee hours, all wages and benefits information. - Comprehensive ACA Reports
Including: Applicable Large Employer report, Affordability test, our unique ACA employee eligibility predictor tool, employee classification analysis and variable hour employees monitoring. - Real-time alerts
Get alerted when employees are approaching the 30-hour threshold, so you know who to schedule for the next shift. - A dedicated ACA specialist
Never fall behind! Our ACA specialists who will monitor your compliance and review your reports and employee eligibility status on an ongoing basis. - Forms 1094-C and 1095-C Filing
Ensure accurate completion and filing of your ACA forms with self-auditing capabilities for quality assurance.
Contact us to learn more about EPAY’s ACA Compliance and Reporting package!