The Affordable Care Act requires applicable large employers (effectively those with more than 50 “full-time” employees) to report to the IRS that they offered “affordable” health coverage during each month of 2016.
These forms are due to your employees at the end of January 2017 and to the IRS at the end of February 2017 (March 31, 2017 if filed electronically). Please note that these dates are earlier than the 2015 extended filing deadlines of forms to employees by March 31, 2016 and IRS filing date of June 30, 2016.
To determine if you are required to file the forms, a full time employee for this test is defined as those working 30 or more average hours a week. There are several affordability safe harbors with the most common one being the employee portion of the premiums are less than 9.5% of their gross wages.
Penalties for this information reporting can be as high as $500 per form (employee). It is important to be prepared now since the due date has been moved up to January instead of March.
There are additional requirements if the heath care plans are self-funded and affiliated companies need to combine collective employee counts for purposes of the applicable large employer test.
For more information on the compliance requirements and how we can assist you, please contact your Warren Averett advisor.