Things to know for 2016 about the new ACA updates

1. ACA in 2016:
Building on the Foundation
Full-time employee is reasonably expected to work an
average of at least 30 hours of service per week.
Part-time employee is reasonably expected to work an
average of less than 30 hours of service per week.
New employee is variable hour ONLY if it can’t be
determined at time of hire that employee is reasonably
expected to work at least 30 hours per week.
Employers likely to use
- Look-back method for hourly employees
- Monthly method for salaried employees
Effective January 1, 2016, pay or play relief for companies
with 50-99 full-time equivalents (FTEs) expires. Now all
employers with 50 or more FTEs are required to offer
minimum essential health care coverage, or face fines
from the IRS.
To determine 2016 ALE status, you can use as little as a
six-month consecutive period in 2015.
Non-ALEs with self-insured plans must report on all covered
employees to comply with Code Section 6055.
- This reporting will help enforce the Individual Mandate.
ALEs report all offers of coverage to employee, spouse
and dependents under Code Section 6056.
- This reporting will help enforce the Employer Mandate.
Reporting not required
- HSAs
- Wellness programs
- Dental/vision
- On-site medical clinics
ACA EMPLOYMENT STATUS
IRS REPORTING
copyright 2016