In previous posts on employment status under the ACA, we have focused on full-time equivalency (FTE) and how it’s determined for applicable large employers (ALES), and the various types of employment and how they accrue up to FTE. Today’s post centers on the ever-important measurement periods, set amounts of time that employers use to establish full-time (FT) or part-time (PT) employment status.
A recent New York Times article reported on the lack of employees enrolling in employer-sponsored healthcare, especially among small-midsize businesses that pay lower hourly wages (e.g. retail and hospitality). One of the biggest reasons for the dearth of employee enrollment in these industries is that the government definition of “affordable” coverage (9.5% or less of annual income) can mean something very different for a minimum-wage employee.
On October 7, 2015 President Obama signed into law the Protecting Affordable Coverage for Employees (PACE) Act, allowing organizations with 51-100 employees to maintain large employer status.
As part of our series around ACA employment questions – namely how to determine full-time equivalency (FTE) – today we continue with a look at the various types of employment, how/if they play a role in FTE, and calculating the number of hours worked for each employee.
In the midst of looming ACA reporting deadlines and the fast approaching open enrollment period (leading to thoughts around planning for employee health in the 2016 tax year), questions around what constitutes full-time equivalency abound. Determining full-time versus part-time employees can prove maddening especially when variable and seasonal workers enter the fray. In addition, measurement periods play a key role in establishing full or part-time status, and therefore must be utilized properly to ensure compliancy.
Controlling costs, providing competitive benefits, and complying with the ACA – these make up the converging trifecta of difficulties that many small-midsize organizations face on a daily basis when it comes to employer sponsored healthcare. And increases in healthcare costs, which aren’t keeping pace with inflation, are a main sticking point for CEOs and EDs.
Continuing with the topic of the pending ACA reporting for the 2015 tax year, this post focuses on the specifics of Forms 1095-C and 1094-C, including how they’re different and what information is needed for each. In addition, the question of who is responsible for different areas of reporting is addressed.
While we have been hearing and talking about the employer mandate for many months now, the impending tax season makes it all the more crucial to really understand the law (IRS sections 6055 and 6056) and how to stay in compliance. In part one of this two-part series, we looked at reporting information, forms, and who needs to comply with reporting requirements. In part two, we will look further into methods of reporting, deadlines, and penalty relief.
This year marks the first year applicable large employers (ALE; 50+ full time or full-time equivalent employees) are required to report employer-sponsored healthcare coverage to the IRS and provide statements to full-time employees under IRS Sections 6055 and 6056. To help circumvent common misperceptions and errors, this two-part blog series will look at: 1) what needs to be reported, what forms need to be used, and who needs to comply with reporting requirements; and 2) methods of reporting, deadlines, and penalty relief.
The 2016 tax season may seem far away, but with numerous changes in the works for organizations that offer group health coverage, its actually the ideal time to start planning for ACA reporting. Previous blog posts have shared information around reporting requirements and the release of draft forms and penalty fees from the IRS.
