Navigating ACA Compliance

The Affordable Care Act (ACA) labor law, also referred to as Obamacare, was approved in 2010 with the goal of providing all Americans with access to low-cost health insurance. Commonly referred to as healthcare reform, the ACA requires businesses with 50 or more full-time equivalent employees to offer health insurance that meets minimum standards.

Health care benefits covered can be anything from doctor visits and hospital stays to maternity care and prescription drugs. Non-compliance can result in costly penalties; therefore, businesses must understand their obligations and seek expert assistance in navigating requirements. While this law aims to expand coverage, the Affordable Care Act compliance presents unique challenges for many companies, as discussed below

Key Challenges for Businesses

Two major challenges businesses face in complying with the ACA are determining full-time employee status and offering affordable coverage. The law defines a full-time employee as someone who works 30 or more hours (on average) per week.

However, calculating hours accurately across different pay periods and employee types can be difficult. Businesses must also provide health plans that meet the ACA's affordability and minimum value standards. This means ensuring plans cover major medical expenses and that employee premium contributions do not exceed 9.5% of household income.

If an employee's required premium contribution for self-only coverage surpasses 9.5% of their combined domestic pay, they may be eligible for an exemption from the individual mandate. Therefore, they may be able to purchase insurance through the ACA Marketplace instead of the employer's plan; juggling all these guidelines takes significant time and resources.

ACA Filing Form 1095-C

IRS Form 1095-C contains information about the health insurance offered to employees, such as coverage dates, the lowest monthly premium for self-only coverage provided under the plan, and the employee's share of premium costs.

Every year, businesses must complete the form to report on the health coverage offered to full-time employees. This involves gathering details on the months each employee was offered coverage and their share of premium costs, and verifying they were not eligible for subsidies through the health insurance marketplace.

The form is then filed with employee statements 1095-C by January 31 and with the IRS by February 28. Missing deadlines or submitting inaccurate information can result in penalties of $250 per incorrect form. Proper completion of Form 1095-C is crucial for ACA compliance.

Should You Get Expert Help?

The last thing you want to deal with is the complexities and consequences of ACA non-compliance. Specialized employment and healthcare experts have in-depth knowledge of the intricate regulations and how they apply specifically to different organizations.

They can provide customized strategies tailored to your business's unique needs and goals to ensure compliance. Consulting with experts also helps mitigate risks. Professionals offer accurate guidance on compliance, reporting, and documentation requirements to help businesses avoid hefty penalties.

Because they stay up to date with any regulatory changes, experts can help you adapt your practices accordingly. Rather than trying to interpret and implement the ACA rules yourself, employment and healthcare specialists handle compliance so you can focus on core operations. This is where MegaPay, an all-in-one payroll, time management, and human resources platform, comes in.

How MegaPay Helps Businesses

MegaPay offers services such as payroll processing, time tracking, and other HR functions. Both employers and employees can access the software to manage HR-related tasks. The platform provides a comprehensive solution for organizations to handle their payroll and human resource management needs efficiently.

MegaPay has a team of experts to help navigate these situations. Contact Us today!

Our assistance can save you time, reduce stress, and help avoid costly fines that stem from unintended ACA non-compliance.