If your business or your job is impacted by the Affordable Care Act (ACA), chances are you have many questions if not concerns. To help you and other employers navigate ACA compliance, ADP has released a new guide that sheds light on the employer mandate and potential financial risks for non-compliance.
The guide, ACA Compliance: A Blueprint for Employers, includes in-depth information on the many ways in which the ACA impacts employers, consumers, health care providers, insurance companies and pharmaceutical and medical device manufacturers.
For example, we explain what you need to do to comply with the Shared Responsibility Employer Mandate taking effect in 2015, including the employee reporting requirements, and why you should focus on the 2018 Excise Tax today even though it is not in effect for a few more years.
While the ACA is a clear point of focus in news media, the unfortunate reality is that awareness of these provisions – and the complexity behind complying with each of them – remains low.
Similarly, many employers are unaware that they must keep detailed records and reports in order to not only demonstrate compliance and avoid penalties during the year but also as proof of compliance in the event of future inquiries or audits by government agencies.
To help visualize different scenarios that you might encounter, the guide also provides numerous examples of the penalties that could be incurred based on the number of variable-hour workers that exceed the 30-hour part-time threshold and the percentage of these employees who are offered coverage. Using the formula included in the guide, you can calculate the penalty you would face should you fail to comply.
Other topics covered in the guide include:
• General compliance rules
• The ‘Big’ Penalty
• The ‘Lesser’ Penalty
• The 2018 Excise Tax
• How to document the offer of coverage
• Non-calendar year plans
• How to report
• Important dates for employers to remember
The ACA presents a wide range of new managerial requirements and challenges for employers and HR leaders. We’ve come to expect a dynamic regulatory and legal environment, with regular releases of interpretations of ACA provisions we all must fully understand, as well as potential future uncertainty created by events such as the U.S. Supreme Court’s recent willingness to hear arguments regarding subsidies for health coverage purchased through federally-facilitated Exchanges.
How well you respond to any unanticipated consequences will be the key to ACA compliance success for your organization. Although navigating this new landscape can be complicated, if you take advantage of tools and resources like ACA Compliance: A Blueprint for Employers, you will be better-equipped to deliver strong business results while remaining in compliance with the law.
This article originally appeared on the ADP@Work Blog.