Does the Affordable Care Act (ACA) Apply to Me?
June 23, 2015

One question on everyone’s mind right now, “Does the ACA apply to me?” In a nutshell, yes it does. Every business is responsible for collecting, documenting, and proving information to the IRS.

So What Must You Report? That Depends on Your Employee Size.
0 – 49 Full-time or Full-time Equivalent Employees (FTEs)

You are responsible for providing the Notice of Exchange within 14 days of an employee’s start date. You must also provide proof that you are not an Applicable Large Employer (ALE), which will include tracking hours for all employees including part-timers, leased employees, and other FTE employees. To learn more about determining FTE status, download the IRS drop at http://www.irs.gov/pub/irs-drop/n-12-58.pdf.

50 – 99 Full-time or FTEs

You are also responsible for providing the Notice of Exchange within 14 days and providing proof of ALE status. But you have the added responsibility of providing the IRS with form 1094C to show all healthcare offered to all eligible employees. The form 1095c show the same information must also be provided to eligible employees. Starting in 2016, your will fall under the same mandates as 100+ employers.

100+ Full-time or FTEs

You have all of the same requirements as 50 – 99 employers but you must also provide measurement or look-back period for part-time or variable hour employees. If those part-time or variable hour employees average 30 hours or more, you have to allow them to enroll in healthcare. You will have to manage the measurement and stability periods for how long they can stay on the plan.

Required information must be reported to the IRS by January 31, 2016. If you company has not started collecting the necessary information to prove ALE status or other information, it’s imperative that you begin doing so now. Most importantly, get with a reputable third party administrators, such as a payroll services company, to help you with the process. . You can find in-depth information about ACA reporting requirements on the IRS website.