The future of the ACA is up in the air, but that doesn’t mean employers can afford to take a “wait and see” approach when it comes to ACA compliance for 2018. Pamela Loatch, writing for HR Drive, warns that businesses may be in for a nasty shock when the IRS finally gets around to assessing fees for mistakes or deliberate non-compliance from 2015-2017. These penalties could all arrive at once, creating a real cash flow problem. Incorrect filings and mis-classified employees can cost businesses $260 per filling with a ceiling set at over $3 million dollars. If a business disregarded the IRS regulations on purpose, the fee is double, and there is no upper limit on penalties. It makes sense to keep a close eye on any changes to ACA compliance for 2018.
What’s Changing for This Year – ACA Compliance for 2018?
● According to OptimaHealth.com, the Patient-Centered Outcomes Research Institute (PCORI) fee for 2018 has been adjusted for inflation and is $2.39 per member/year. Self-funded groups pay this fee directly to the IRS with form 720. The rules for fully funded groups are a bit different and can be found here.
● The “Cadillac” excise tax appears to be on hold for now. The effective date for this 40% tax on high-cost employer-sponsored health insurance has been moved from 2018 to 2020. Businesses have a little more time to decide if/how to adjust their current types of coverage to minimize exposure to this tax. See more at TuftsHealthPlan.com.
● Last October, the IRS made the final version of its ACA reporting forms available along with instructions for how to prepare the forms. SHRM has the full list of form collected in one place for easy access. According to IRS Notice 2018-06, there’s also an extended grace period or “good-faith transition relief” for employers to make corrections or add more complete information to Forms 1095C or B—as long as the forms were filed in a timely manner in the first place.
A Bit of Breathing Room for Notifications
Finally, businesses get a break this year in the rush to furnish forms 1095-C and 1095-B to employees, notifying them of available health coverage. There is an automatic 30-day extension for the 2018 deadline, moving it to March 2. Of course, this reporting is still an additional administrative burden that most employers would rather not have to deal with. At Efficient Forms, we provide a simple way to boost compliance with ACA reporting.
Key benefits of our Efficient ACA service for employers, payroll companies, and HR service firms:
● We keep abreast of the changes in reporting requirements so our rules-based software is always up to date.
● Billing is consumption based, so you pay only for what you need for your workforce.
● There is no contract. Since no one knows what the next year will hold, you have the flexibility to cancel at any time if the ACA reporting requirements become obsolete.
● The whole process is automated and integrates with your existing HRIS systems for seamless delivery.
Learn more about ACA compliance for 2018 by contacting our team today for more information about Efficient ACA.