Starting in the 2015 reporting year if an ALE does not offer affordable coverage or MEC (Minimum Essential Coverage) to full time employees and their dependents they will be subject to a shared responsibility payment to the IRS. You as the employer will be responsible for making this payment if the full-time employee that was not offered coverage received a premium tax credit.
However, if you are self-insured and did not extend coverage to a full-time employee and their dependents you may be subject to paying a fee for the Patient-Centered Outcomes Research Trust Fund. This is a fund that goes aids the Patient-Centered Outcomes Research Institute (PCORI) in their efforts to will assist patients, clinicians, purchasers and policy-makers, in making informed health decisions by advancing the quality and relevance of evidence-based medicine.
These two payments apply if an ALE member does not offer minimum essential coverage to at least 95 percent of its full-time employees (and their dependents), and at least one full-time employee receives the premium tax credit for purchasing coverage through the Health Insurance Marketplace.
2015 Transition Relief, a temporary exemption from the shared responsibility payments, is offered to employers that fit the following conditions:
1. ALEs with Fewer than 100 Full-time Employees (Including Full-time Equivalent Employees)
2. Shorter Period Permitted for Determining ALE Status for 2015
3. Certain Non-Calendar Year Plans
4. Offers of Minimum Essential Coverage for Pay Periods in January 2015.
5. Offers of Minimum Essential Coverage to Dependents
6. Offers of Minimum Essential Coverage to at Least 70 Percent of Full-Time Employees (and Their Dependents)
7. Shorter Measurement Periods Permitted for Identifying Full-Time Employees
8. Calculation of Employer Shared Responsibility Payment for ALEs With at Least 100 Full-time Employees (Including Full-Time Equivalent Employees)
With the filing season getting closer each week you should be getting prepared to comply with the ACA reporting requirements. Tab Service Company does offer a full reporting and compliance solution to Applicable Large Employers who are required to track employees, distribute forms, and electronically file with the IRS. Call a Tab Service Company representative today to discuss your reporting needs.
Tab Service Company is a service bureau company that offers ACA compliance services for section 6055 reporting. Established in 1960 the company has provided organizations and businesses across the nation with Business Process Outsourcing solutions. We approach the section 6056 reporting and compliance from a holistic standpoint to include: tax consulting, data collection, electronic presentment and print/mailing/electronic filing. Call today to speak to a representative (312) 527-4306