Clarifications on ACA Reporting

aca imageAre you unsure about whether you need to comply with ACA (Affordable Care Act) reporting requirements? All organizations have reporting responsibilities, whether or not they are an ALE (Applicable Large Employer). The responsibilities vary, however, based on whether an organization is large (50+ full-time equivalent employees), or small (fewer than 50). So, you need to first determine whether you are considered a large or small employer, and then make sure you know which provisions of the law apply to you.

So, what does “full-time equivalent” mean, anyway? Since employees can be full or part-time, the IRS asks employers to count the total Full-Time Equivalent (FTE) of their employees, rather than the number of employees they have, for reporting purposes. The IRS has defined a full-time employee as “an employee who has, on average, at least 30 hours of service per week during the calendar month, or at least 130 hours of service during the calendar month”, and they have provided the following formula for employers to use to calculate their full-time equivalent employees: “(1) Combine the number of hours of service of all non-full-time employees for a month, but do not include more than 120 hours of service per employee, and (2) Divide the total by 120.”

To determine whether your organization is an ALE, refer to this link.

To determine your reporting responsibilities, please refer to this link.

We will be sending out another Blog in the next few days that will contain a short survey. Please take the time to complete the survey as this will help us to better assist you with the reporting required for your organization.

As we learn of changes to the ACA requirements, we will make any necessary programming changes, and publish news articles/blogs. Remember that it is your responsibility as an employer to stay up to date and be in compliance with the provisions. Please submit a cyber support request if you need assistance with getting the required information out of the system for reporting purposes.

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