Your Quick Guide to ACA ComplianceBrought to you by: TREK Insurance Group, LLC

The Basics

• The Affordable Care Act (ACA) was created to help ensure all people to have affordable healthcare options.

Like or it not, your company has to be ACA complaint. And even though weren't ACA consultants, we are here to connect the questions to the answers.

And to give uncles everyw here something to gripe about.

Does ACA Apply to my small company?

If Your Company Had: Then You Need To:_____________________________________________________________50 or more full-time employees Comply with ACA requirements (or full-time equivalents) in 2014 However, companies that had between 50-99 employees in 2014 not have to pay penalties.

_____________________________________________________________More than 100 employees in 2014 Have been ACA-complaint for

2015 and file the appropriate tax forms in 2016 to prove that the company were compliant

What is considered full-time for employees?

The IRS considers any employee who works an average of 30 or more hours per week (or 130 hours each month) full-time. Keep in mind that part-time employees’ hours DO factor into how many full-time employees (or equivalents) you have. If you’re not sure to determine the number, you can use the calculator to find out.

If I offer health-care coverage to employees, am I ACA compliant?

Not necessarily. The following guidelines must apply to make sure the health insurance you offer is compliant:1. Health coverage must provide a certain level of value. An

ACA-compliant health plan needs to cover at least 60% of the total cost of an employee’s medical expanse. This should include hospital and physician benefits.

2. Health coverage must be affordable. The coverage you provide can’t cost employees more the 9.5% of their annual household income for an employee plan.

3. However. Some safe harbors exist in case you don’t know all your employees’ household incomes. For more information on how to calculate affordability, go here!

What files do I need to file and when?

All companies with more than 50 employees needs to file the 1094-C and 1095-C forms with the IRS.

The forms you file with the IRS that shows your company's health-care coverage is ACA-compliant. It must be sent to the IRS by the end of May (for companies with fewer than 250 eligible employees) or June (if filed electronically for companies with more than 250 eligible employees). This form gives information about: Your company’s contact and tax information Your ACA tracking and reporting strategy (including if you’re using any Safe Harbors) How many full-time employees you had during the year and if they were offered qualifying

coverage. The type of health coverage offered and who it was offered to The percentage of the premium the employee would have paid if they had employee-only

coverage Enrollment, employment status, and certain Safe Harbors were used to calculate affordability.

Where do I get these forms to file with the IRS?

You can download them right here from the IRS website: Click Here For: Click here For:

1094-C 1095-C

Why do I keep hearing about Sections 6055 & 6056?

Sections 6055 & 6056 outline the reporting requirements companies must comply with that were created by the Affordable Care Act (ACA). Section 6055 applies to companies that have employees who are self-insured, while Section 6056 applies to companies with at least 50 full-time employees. These reporting rules help companies know which information they need to report to the IRS and the health coverage they offer to employees. You can review more details of Section 6055 & 6056 on the IRS website.

What is “transition relief” and does my company qualify?

According to Section 4980H or Safe Harbor, companies who had 50-99 employees in 2014 may not be subject to penalties in 2016 if they had ALL the following:Average 50-99 full-time employeesDon’t cut their workforce with the intent to qualify for “transition

relief”And their health coverage is maintained until the end of the year.In addition, Safe Harbor includes alternatives methods of tracking your health plan’s affordability, your employees’ employment status, and enrollment for your employee workforce.

What is the penalty if my company is not ACA-compliant or does the ACA apply to my small company?

The IRS will charge a penalty based on how many employees you have. (Although if you had fewer than 100 employees in 2015, penalties will not apply until 2016.)IF YOU DO NOT THEN YOU MUST PAY ___________________________________________________________________________Offer health Coverage at all $2000 for every full-time employee excluding the first 30 employees ___________________________________________________________________________Offer ”affordable” health coverage $3000 for every full-time employee excluding the first 30 employees ________________________________________________________________________________________File the appropriate forms $200 for each missing form not received by the IRS ________________________________________________________________________________________Provide employees with written statement $200 for each statement that should have been received

For more information instructions about the 1094/1095-C, visit the IRS website.