So you’re a nonprofit employer trying to wrap your head around Obamacare. Here are some updates you should know, and understand for that matter. On June 25, the U.S. Supreme Court upheld the ruling that tax credits are available to individuals in states that use a federally facilitated exchange. Which means… nothing has changed. You still must abide by the reporting rules and the Pay or Play mandate is intact. Non-compliance shouldn’t even cross your mind – it’s a risk that any employer shouldn’t take.
So what do you have to do?
ACA requirements say that employers providing self-insured coverage must file Form 1095, an annual statement containing monthly details on the health care coverage offered in 2015, to each employee by February 1, 2016. The IRS will use Form 1095-C to determine whether employers and employees are subject to fines. Employers are also required to file Forms 1095 along with a 1094 transmittal form to the IRS by March 31, 2016. The Trade Preference Extension Act, signed into law on June 29th, applies to Forms 1094 and 1095 and significantly increased the penalties for failing to file correct information on returns and provide correct payee statements on time. Unfortunately, you’re not alone if you’re not ready. A survey of employers published by Equifax and PricewaterhouseCoopers, L.L.P in May showed that only 10 percent of employers have implemented a solution for ACA reporting, while 16 percent haven’t yet considered it or don’t know what solutions to even consider.
Here’s your to-do list:
- Figure out who will be responsible for these reporting requirements. Is it Human Resources, Legal, or someone else within the organization?
- Get a plan in place. You will be able to file an extension on the deadline to return information, but because the data needed is from January 2015 and on, you need to start gathering that information now. HR, Payroll, IS, Benefits and more departments/people may be needed to get it all in one place.
- Educate employees about form 1095 that they’ll receive. And designate someone to field questions, since employees are likely to have a slew of them.
Top ACA Questions… Answered
The UST HR Workplace powered by ThinkHR helps nonprofits stay in compliance with all things HR – and that’s why they compiled a list of Top 20 ACA Questions and Answers.
Nonprofit employers can get full access to the ThinkHR hotline, employee training, and all white papers at a reduced monthly cost – and sign up for a free trial – here.
Sources for this article:
Equifax Workforce Soutions, the provider of UST’s unemployment claims administration services for nonprofit employers.
ThinkHR, the provider of UST’s HR Workplace, including a live HR hotline and compliance platform for nonprofits.