THE TIME TO PREPARE FOR 2016 STARTS ON LABOR DAY
Norwalk, CT. [August 19, 2015] Leading area human resources consulting and outsourcing provider OperationsInc (www.OperationsInc.com) has established a team of Affordable Care Act (ACA) Consultants in a concerted effort to assist area businesses in complying with the ACA. The company stresses that the time has come for businesses to start preparing for January 1, 2016 and the Affordable Care Act. Businesses normally start planning their year-end benefit related activities around late October, but anticipated issues driven by new reporting requirements have experts advising organizations start the process as soon as possible.
“We estimate that the amount of hours needed to properly address ACA requirements plus year end employee benefit related activities will be two to three times what businesses have budgeted for in years past,” said David Lewis, CEO of OperationsInc. “As such, we’ve geared up for a greater number of clients requiring expert advice and consultation on how best to address these new rules and challenges.”
Key ACA-related Issues for Businesses to Consider:
Pay or Play – Affordable Care
- Companies with 100+ employees (or Full Time Equivalents – FTEs) already are subject to the requirement to offer “affordable care” or face a penalty (effective 1/1/15).
- Those with 50-99 Full Time Equivalents (FTEs) will have to provide “affordable care” to their employees beginning 1/1/16, or also face a penalty. The ACA dictates the maximum amount an employee can be asked to pay for these plans, with the lowest level plan referred to as a “Bronze Level Plan”. A business’ plan design for 2016 may need to change, significantly in some cases, to comply with the ACA…or some firms may choose to pay the penalties and maintain their current plan.
ACA Reporting Forms – 1094/1095
- ALL businesses will have to file new IRS based forms (1094 and 1095) during the first quarter of 2016. Deadlines for filing these forms will depend on a number of variables.
- These forms will be filed with the IRS to prove that businesses are ACA compliant (or are noncompliant and therefore owe a penalty). Further, the forms must also be given to each employee for the previous tax year (similar to a W-2). Individuals will be required to file these forms with their tax return to support that they have (or do not have) insurance. Employees who have waived coverage offered, and are otherwise not insured, will face a personal tax penalty.
- The 1094/1095 form completion process may be time consuming depending on employee headcount for the year, as well as how the data has been managed to this point.
Founded by David Lewis in 2001, OperationsInc specializes in HR solutions for small businesses and HR professionals. In addition to Affordable Care Act related services, OperationsInc’s portfolio of offerings includes Human Resources Outsourcing, Recruitment and Retention Services, Organizational Development Services, Outplacement Services, Benefits Administration, Exit Interview Services, Payroll Administration,and Management and Staff Training.
OperationsInc is located at 535 Connecticut Avenue, Second Floor, Norwalk, CT 06854 and can be reached at (203) 322-0538 or info@OperationsInc.com.