It’s difficult to imagine that we’ve nearly closed the books on 2015. However, before we can really say goodbye to this year and begin focusing on what is to come in the future, we must first prepare for the changes that will take place in 2016 due to the Health Care Reform Act.
While much of the ACA is already in place, there are still several portions that have yet to take effect. Now is the time to learn more about the changes that are in store for 2016 so that you can be adequately prepared for the new requirements.
Early on in 2016, businesses are required to submit a couple of different reports. You can fully learn everything about these requirements under Sections 6055 and 6056, but here are some of the highlights that you will need to pay attention to the most.
The most important part of this report is in regard to the employees that are covered under a company’s insurance policy. It will be the requirement of the company to report to the IRS whether employees are insured with the minimum coverage mandate.
A second report is also required during the first part of 2016. With this report, large employers are required to provide information to the IRS, such as statements, that show information about the health coverage that is being offered. This information is then used by the IRS to determine whether penalties are due from the company supplying the information.
One of the main portions of the Affordable Care Act was the section that required employers to provide health insurance coverage to their employees. If they were not able or willing to provide the minimum mandate, these employers were to be faced with a penalty that must be paid to the IRS.
Employers who have more than 50 employees are now required to offer health insurance for their employees or they must pay a penalty. While this is a portion that has been in place for larger employers, the actual compliance date was originally pushed back for employers with between 50 and 99 employees. This requirement will take now begin taking effect in 2016.
Another portion of this same section that will change in 2016 is in regard to employers who have more than 100 employees. In 2016, these large employers will be required to provide insurance for 70% of their full-time employees. Originally, the requirement was set at 95% of employees by this point in time, but it was later changed to offer more flexibility to employers.
Many small businesses have struggled for years to provide quality health insurance at reasonable prices to their employees. Another aspect of the ACA that is set to go into effect in 2016 is SHOP. This is something that has been designed to help small businesses better offer insurance to their employees.
One of the best things about SHOP is that employers are able to access it any time during the year. This offers flexibility to employers and a unique way for them to provide health insurance to their employees.
There is no argument that the ACA is complicated. With many facets taking place every year, it is difficult for employers to stay up to date on the changes in order to stay compliant. However, with some preparation and a bit of information, all businesses have the power to stay compliant and provide a huge benefit to their employees. If you are looking for more ways that you can stay compliant in throughout the year when it comes to ACA, be sure to contact us to learn more about the ACT and how you can prepare for the changes.