Yesterday afternoon, the IRS issued Notice 2016-4, which provides unexpected relief to employers distributing those soon to be well-known Form 1095-C information returns to employees. This late Christmas present will be well received by every employer struggling with system update and information gathering challenges. Applicable Large Employers (‘ALE’) and insurance companies now have nearly two additional months to get forms in the mail to employees. This additional time applies not only to Form 1095-C but also to Forms 1094-B, 1094-C, and 1095-B. Who said there wasn’t a Santa Claus?Read More
BTerrell Group Blog
Users of the AmeriFlex Workforce Management System are enjoying a user interface update recently made that streamlines the navigation experience. As noted on this infographic, “Here’s a sneak peek of your new Workforce…,” the floating navigation bar has been replaced with intuitive icons and links. The search bar has been moved to a more prominent position, so you can find data faster. Other changes include compact icons that replace cumbersome cascading menus and clusters with subheadings that simplify the menu to remove distracting clutter. These and many other enhancements make entering and finding data easier and speedier, which helps you do more work with less effort so you can spend time winning new customers and serving existing ones!Read More
By now, you have surely heard about the employer mandate included within the Affordable Care Act (ACA), often referred to as “play or pay.” (Quick recap: Employers must offer “minimum essential health coverage” to full-time employees that is both “affordable” and offers “minimum value.”) But do you understand all of the implications on your small or midsize business? Does the mandate apply to you? How do you calculate full-time employees? Do you factor in employees working for your company outside the United States? What if you make a mistake?
Here are a few startling details about the employer mandate that I’ve come across:
- If an employer subject to the mandate does not provide “minimum essential health coverage” to full-time employees and a full-time employee then obtains subsidized coverage on an exchange, the IRS may assess an annualized penalty equivalent to $2,000 multiplied by the total number of full-time employees in the workforce.
- If coverage offered is not considered “affordable,” then the IRS may assess an annualized penalty of $3,000 per eligible employee who seeks subsidized coverage under an exchange.