Complying with Affordable Care Act (ACA) Reporting Requirements

kaiser-infographicIt’s been five years since the passing of the Affordable Care Act (ACA), and if your company hasn’t been thinking about how to report employee payroll and health benefits to meet ACA requirements, you’re going to be unpleasantly surprised.  For organizations with 100 or more full-time employees or equivalents, ACA-mandated reports that track employee data for 2015 will need to be filed with the IRS in January 2016. Companies with 50 to 99 full-time employees may get some relief from the mandated 2016 reporting deadline if they can meet certain criteria, but all employers with 50 or more full-time employees will have to report to the IRS starting in 2017.  ACA reporting to the IRS must be broken down by month detailing both employees’ access and contributions to employer-provided healthcare (hours and dollars).

If your company doesn’t produce the proper documentation, you are still going to pay a penalty. Neglecting to file the very basic forms in January 2016 will incur a penalty of $100 per form per employee, to a maximum of $1.5 million. But there are a broad range of penalties a company could face.  Click on this infographic from the Kaiser Family Foundation for an explanation of these new potential penalties for non-compliance under the Affordable Care Act.

Fortunately for our Microsoft Dynamics GP (formerly Great Plains) clients, the groundwork for the mandatory ACA reporting has already been laid. Microsoft implemented ACA tracking mechanisms in the 2014 Year-End Tax Update and will soon release another update that will allows users to report on the recorded data. With this next update, users will have the ability to review the new ACA forms in advance of their 2015 year-end close.

The format for the two new forms, 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) and 1095-C (Employer-Provided Health Insurance Offer and Coverage, which is similar to a W2) in terms of what data is required to be reported has not yet been finalized by the government, but Microsoft continues to follow ACA news in order to provide updated code accordingly.

If you need help complying with the reporting requirements of the ACA, or are just looking for better ways to manage your payroll and HR data, contact us at Accountnet to learn more about how we can help.