Affordable Care Act 1094-C & 1095-C: Client Questionnaire ...telepayinsurance.com/.../2016_ACA_094-C_and_1095-C... · New business regulations are typically accompanied by new reporting

www.TelePayroll.com/ACA

Affordable Care Act 1094-C & 1095-C:

Client Questionnaire & Information Collection

Updated for 2016

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Navigating ACA Forms 1094-c / 1095-c

Employer Mandate Overview

Organizations with 50 or more full-time equivalent employees must report to the IRS beginning in 2016. The Affordable Care Act added section 6056 to the Internal Revenue Code, which mandates employers to submit two forms regarding the health coverage offered to employees.

The two forms are Transmittal Form 1094-C for the company and an The two forms are Transmittal Form 1094-C for the company and an Employee Statement Form 1095-C for each eligible employee. This requirement is similar to Forms W2 and W3 for reporting wages.

Large Employers with 50 or more full-time Employees

New business regulations are typically accompanied by new reporting requirements, and the employer mandate is no different. The main reporting requirement is under Section 6056 of the tax code. Section 6056 is comprised of two main reporting requirements, IRS Forms 1094-C and 1095-C. Read below to see how this affects employers of various sizes in 2016 and beyond:

What New IRS Reporting Is Required?

In 2016, the employer mandate will affect your organization if you have 50 or more full-time equivalent (FTE) employees. Full-time employees are defined by working 30 or more average hours per week while part-time employees are included as a fraction in the FTE count. To calculate your full-time equivalent employee count, use the formula below:

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Does Our Organization Have to File Forms 1094-C / 1095-C?

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Glossary of Terms

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Glossary of Terms (Continued)

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Helpful Tip: For Penalty B, the penalty amount cannot be greater than the penalty assessed for not offering any coverage.

220 FT employees, 25 with subsidyPenalty: $81,000

(20 subsidies x $3,240 = $81,000) OR(220 - 30 exempt, 190 x $2,160 = $410,400)

Penalty B

90 Full Time employeesPenalty: $129,600

(90 - 30 exempt = 60 x $2,160)

Penalty A

Even though an employer offers minimum essential coverage (MEC) to at least 95% of its employees in 2016, a penalty is assessed if the following guidelines are not met and at least one full time employee receives a premium subsidy: 1. Coverage does not cover at least 60% of expected medical costs for an average person or family 2. Employee’s share of the premium is greater than 9.66% of their income 3. Employer offers MEC to at least 95% of full time employees, but at least one full time employee receives a premium subsidy The penalty for an employee receiving a The penalty for an employee receiving a subsidy through the health insurance exchange is the lesser of $3,240 for each non-covered full-time employee that receives a subsidy or Penalty A to the left.

B. Fail to offer Affordable or Minimum value coverage

If an employer fails to offer minimum essential coverage to at least 95% of their full-time employees and their dependents in 2016, and at least one full-time employee receives a premium subsidy, a penalty may be assessed.

The penalty for not offering minimum The penalty for not offering minimum essential coverage is $2,160 per full-time employee, excluding the first 30 employees. Penalties are assessed annually and are not a one-time fee.

A. Fail to offer coverage to 95% of Full-time employees

If an organization has more than 50 full-time equivalent employees and does not comply with the employer mandate, penalties may be assessed that can add up very quickly. There are two main types of penalties: one for failing to offer health coverage to at least 95% of full-time employees and another for failing to offer coverage that meets affordability and minimum value thresholds.

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What are the penalties for not complying?

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How does our company avoid penalties?

We are offering a training webinar to our clients to assist in completing the questionnaire and spreadsheet we require to file your Forms 1094-C and 1095-C.

Attendance of the training webinar is mandatory* for all clients that have elected for TelePayroll to file their Forms 1094-C and 1095-C (or 1094-B and 1095-B if you offer a self-funded insurance plan). It should be attended by the person that will

be completing the documents / spreadsheets.

SAVE THE DATE

Tuesday, November 8Tuesday, November 8th at 10:00 AM PST

Invitation to follow

*There will be a recording of the webinar for clients with schedule conflicts. We highly encourage you to attend the live session if you are available.

10/3/16 - 10/7/16

11/14/16 - 11/18/16

11/8/16

1/31/17

3/31/17

Information Booklet Sent Via Email

Information Booklet Sent Via Courier

Mandatory ACA Training Webinar

** Webinar given only once. You need to attend this session **

Distribution of 1095-C forms to applicable employees required. Every full-time employee must receive Form 1095-C, including part-time employees that have

enrolled in your health care plan

Forms 1094-C and 1095-C filed electronically with IRS

TelePayroll 1094-C and 1095-C Training Webinars

1094-c and 1095-c Important Dates

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Give your employees the tools and insight they need to outperform the competition and take your business to the next level. Evolution HCM provides a proven framework to keep your workforce engaged and growing. It’s time to transform your company with Evolution HCM.

TelePay Insurance Agency was founded in 2010 as a subsidiary of TelePayroll. Due to this unique partnership, TelePay Insurance can fully customize insurance solutions for any organization, whether you are a sole proprietor or a multi- national corporation. Our services are also scalable, allowing us to assist your organization through all stages of growth and development.

Our certified, helpful agents are trained to work with you and your organization to find the most Our certified, helpful agents are trained to work with you and your organization to find the most cost-effective health plan that meets your unique situation. Through our network of over 100 healthcare providers, TelePay Insurance will find the proper insurance plan for your business that will help cover your employees’ health care expenses and keep your business compliant with Affordable Care Act mandates.

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Evolution HCM

ACA Monitoring Service

TelePay Insurance Agency


Documents

Affordable Care Act 1094-C & 1095-C: Client Questionnaire ...telepayinsurance.com/.../2016_ACA_094-C_and_1095-C... · New business regulations are typically accompanied by new reporting