Top 8 things Employers Need to Know about the ACA law
- Know how to calculate whether or not you are considered a LARGE EMPLOYER under the law (and therefore subject to the "play or pay" rules. Be sure to count all part timers and convert to FTE (Full time equivalent) and don't forget to add in any partnership businesses or corporations where you are a joint owner.
- Know that even if you are a SMALL employer and not required to offer health insurance, you need to provide notices of the exchange to employees and new hires. NOTE: there is no penalty associated with noncompliance, but that doesn't mean you shouldn't do it!
- In determining the status of full time eligible employees, understand that you may set up a Look-back period to determine the employees' eligibility during a certain measuring timeline. This is helpful if you have employees who vary hours from paycheck to paycheck and quarter to quarter.
- Understand how the government calculates a Seasonal Employee (whom is employed general under 6 months per year) and how to calculate a terminated employee who is later rehired.
- Know that the MAXIMUM waiting period for employees to be eligible for benefits is 90 days (and the penalty for noncompliance is $100/day per employee! Yikes!)
- Know that the IRS has hired thousands of new IRS agents with the goal is to make sure that the ACA law is implemented properly. So you can expect to see more audits, and you need to make sure your t's are crossed and I's are dotted.
- BE SURE TO HAVE A PLAN DOCUMENT for all your plans – this is NOT an SBC (Summary of Benefits) . This requirement has ALWAYS Been there (under ERISA Rules), and was not added with the ACA law; however, with more and more companies being audited, be sure to have all your documents in order and in place just in case you get audited. If you are not certain if you have these documents in order, seek expert advice!
- Know the law, how it affects you, and have a strategy. You may decide that your strategy is to pay the tax penalty; this is a strategy too! But do your homework in advance and make sure you know the consequences of your decisions (or the lack there of.)
