Compliance Stuff

  Recent legislative changes have brought significant relief to employers grappling with the complexities of Affordable Care Act (ACA) reporting. The  Employer Reporting Improvement Act (Act)  and the  Paperwork Burden Reduction Act , once signed into law by President Biden, will introduce several key modifications to the ACA’s reporting and enforcement rules.  Background: Current ACA Reporting Requirements   Under the current ACA regulations, plan sponsors, particularly ALEs, must report information about the health coverage they offer to employees using Forms 1095-B and 1095-C. These forms must be filed with the IRS and furnished to all full-time employees and employees receiving employer-sponsored coverage.     Current ACA enforcement includes a tight 30-day turnaround to respond to IRS proposed Employer Shared Responsibility Payments (ESRP) assessments. These assessments are sent via US mail, often taking time to reach employer contacts. Thi...

In a win for plan sponsors, the recently enacted  Employer Reporting Improvement Act  and the  Paperwork Burden Reduction Act  (the Acts), among other things, introduce several significant changes to the reporting and enforcement rules of the Affordable Care Act (ACA).  The Current Rules Forms 1095-B and 1095-C:   U nder the ACA, plan sponsors, specifically Applicable Large Employers (ALEs), must report information about the health coverage they offer to their employees.  This ACA reporting is done through Forms 1095-B and 1095-C, which must be filed with the IRS and provided to all full-time employees and employees receiving employer-sponsored coverage. (This is the case, even though the ACA’s individual mandate is currently set to $0, and therefore functionally isn’t being enforced.) Key aspects of ACA enforcement also include: A Tight Turnaround to Respond to Proposed Assessments : The IRS may assess employer shared responsibility payments (ES...