On June 25 the Supreme Court decided again to uphold the Affordable Care Act. This means that large employers can no longer put off compliance in hopes that the act will be invalidated. If you think your company may need to comply and do not know where to start, contact one of our expert financial advisors today.
Who is Defined as a “Large” Employer?
Employers with fifty or more full-time employees are considered large employers under the ACA and must file Forms 1094 and 1095, beginning with the 2015 tax year. (For 2015, an employer with less than 100 employees is not considered a large employer.) These large employers must report any employee who works full time for at least a month, for each month they work. You must also report whether an offering of coverage was made to an employee during a calendar month, the coverage they have on their first month of employment, and the insurance coverage they have upon the termination of employment.
There is Help for Navigating the New System.
The IRS helps clarify reporting requirements with new FAQ documents to address specific questions with each form. You can also contact us to discuss any issues that may arise, or to help pre-plan before hiring or implementing your own plan to fit the ACA.
You do not need to report employees who were not full-time for any month of the year, or employees who were in a limited non-assessment period for all 12 months of the year. Some employers may be exempt as well.
Contact us today to discuss the ACA and any other questions you may have about your company's finances and taxes.