Affordable Care Act: Final Rules

Affordable Care Act: Final Rules

The final rules have been released about the Affordable Care Act provisions that apply to employers. ?_Large employers (those with 100+ full-time equivalent employees) need to start the determination of full-time employee status in 2014 to ensure compliance for 2015. While the time is not yet here for compliance with these requirements, now is the time to complete the setup that will be necessary for reporting, and to practice by using the two reports we have designed for this purpose:

Job Pay Rate Units (Reports > General Payroll Info > Job Pay Reports)?_

Calendar Job Rate Monthly Summaries (Reports > Calendar and Fiscal Year) ?_

Click on the header of this article to read more . . . .

In summary, these are the final rules:

An employee working 15 hours/week counts as half a full-time employee. ?_?_?_

For employers with 50-99 full-time equivalent employees, the affordable health insurance coverage requirement has been delayed until 2016.

For employers with 100+ full-time equivalent employees, the compliance year remains 2015. These employers must offer affordable health coverage to at least 70% of ?_?_?_ their full-time employees (those working 40 hours/week or 173.33 hours/month).

Starting in 2016, the requirement for all employers will be to offer affordable health coverage to 95% of full-time employees.

In addition to reporting employees’ insurance contributions in box 12 of Form W-2, using code DD, all employers with at least 50 full-time equivalent employees will also be required, starting in early 2016 (for calendar year 2015), to report specific health plan coverage information to covered employees and the IRS. These reports, which fall under I.R.C. Sections 6055 and 6056, and are ?_?_?_ still being developed, will be used to determine whether employers and employees have met compliance requirements. ?_?_?_

Alternative reporting methods are available, which allow employers to skip reporting some data elements if other criteria are met.

The Bureau of National Affairs, Inc ?_or BNA, has an excellent review of the final rules and they are allowing us to share this with our clients (and only clients) at no charge. ?_Due to copyright laws, we are required to secure the access of this newsletter, and have therefore made it password protected. ?_?_You should have received a separate email referring to this News Article along with the password. ?_Once you have the password in hand, click here, ?_ACA News with link to BNA review. ?_
The BNA newsletter has more details about the provisions, including how to determine what is considered affordable health care coverage, what specific information will be reported on each of the new reports, the method and dates by which each report/file must be submitted, and the option of alternate reporting methods. The document was reproduced with permission from the Payroll Administration Guide Newsletter, 25 PAG, Issue 7, Part 2 (Mar. 26, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033
Also for your review, is an RDA News Article published 9/19/2013 which details the OpenRDA setup that will need to be in place to facilitate reporting. ?_This article can be found here, ?_?_Affordable Care Act and Part-Time Employees.

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