As we move into Q3 businesses should be thinking about what they need to wrap up 2017 and prepare for 2018.
Many of you know that there has been lots of conversation about ACA/Obamacare. As of right now it is here to stay and regardless of your opinion about ACA. Many businesses that have 50 or more full time or full time equivalent employees to start preparing for their 1095’s that are due at the end of the year. To prepare there are some simple steps that all employers should do.
Step 1 – Identify full-time employees
Your company needs to determine who is a full time or full time equivalent employee.
If you, like many organizations are confused by “full time equivalent employee”. Basically, add up the hours that non-full-time employees are paid during a year and divide the total by 2080. The answer is the number of “full time equivalent. There is a formula that is available on the IRS’s website (IRS formula
Step 2- Track what the employer mandate requires.
After you determined what employees are full time, your company NEEDS to track and document compliance. The basic rule of thumb, “is there proof that coverage was offered to ALL eligible full time employees”. Part off the proof is keeping track of the dated that coverage was offered and that it was offered to each eligible employee. (for complete instructions click here
) This step is critical to document, track and establish a process to organize all this information in one place.
If you do not have a process or system available, please contact OnePayHR, we offer a fully integrated software solution that tracks the entirety of the employee life cycle, while helping your organization stay compliant with ACA as well as other industry regulated requirements.
Step 3- Report the cost of the employer sponsored group health plan.
Your company must complete an additional step when preparing these tax form to be considered ACA Compliant. Your company is required to report the cost of employer sponsored group health plan in box 12 of the w-2 forms to shoe the workers the total cost. Remember, when reporting the cost, please remember to report both the company’s contribution as well as the employees contributions.
Step 4- educate your employees
ACA is very confusing for employer, and many are still unfamiliar with all the new laws and forms that are required. It is important that is your organization is an ACA mandated company you need to notify your employees that they will be receiving an additional form called the 1095 and what they should expect with all the information on it.
Now that ACA is in full swing this year, it is manageable if your organization has been keeping track of all your eligible employees information. However, if these simple 4 steps have you questioning your compliance or if it makes you feel overwhelmed, please contact OnePayHR and we can explain how your software and expertise can help you this year, and many years to come.