COMPLIANCE THRESHOLD REMAINS. THE SAME. The employer mandate remains the same for 2017. Large employers are required to
INSIGHTS
2017 ACA Compliance Checklist It is important to identify the actions your organization needs to take to proactively and efficiently plan for the 2017 IRS deadlines. Understanding the requirements and how they impact benefits programs is crucial to the success of 2017 ACA compliance reporting. Here are some things to keep in mind as you continue your data gathering process:
NO GUARANTEED IRS EXTENSIONS
For 2017 reporting, organizations must send forms 1095-B and 1095-C to workers by January 31, 2018. Forms 1094-B, 1095-B, 1094-C, and 1095-C must be submitted to the IRS no later than February 28, 2018 if filing on paper, and by March 31, 2017 if filing electronically*. It’s crucial for companies to stay on top of these dates and check with the IRS as the due dates approach to ensure there haven’t been additional changes. In the past there deadlines have been extended but there is no guarantee.
LOOK FOR NEW FORMS
The IRS provides drafts of 1094-C and 1095-C forms and instructions each year. Find the forms on the IRS website.
COMPLIANCE THRESHOLD REMAINS THE SAME
The employer mandate remains the same for 2017. Large employers are required to prove 95% of their eligible employees were offered healthcare coverage.
COVERAGE PENALTIES ARE GETTING STEEPER Which penalty do you want to avoid? Penalty A or Penalty B? Or both? Penalty A refers to eligibility coverage. If an employer does not offer coverage to 95% of its full-time employees, they will be assessed a fine of $2260 per employee. This is a $100 increase over 2016. Penalty B is assessed when an employer fails to offer affordable insurance or the insurance offered does not provide minimum value. That penalty has increased to $3390, up $150 over 2016.
*Companies with over 250 reports must file electronically.
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2017 ACA Compliance Checklist | Insights
DELINQUENCY PENALTIES STILL EXIST
Not only can you get fined for failing to provide coverage, you can also get fined for failing to file or provide correct payee statements. This isn’t new but fines increased to $260 per statement (with a $3,218,500 penalty max) for failure to provide forms to employees, and/or for failing to file with the IRS.
EMPLOYER SHARED RESPONSIBILITY TRANSITION RELIEF GONE
Transition relief for the Employer Shared Responsibility payment for large employers with more than 50 full-time employees expired on January 1, 2017. Flex contribution and grandfathered plans have also expired. All plans for 2017 must be ACA compliant.
AFFORDABILITY GETS REDEFINED
Affordability has changed based on the cost of coverage compared to an employee’s household income. In 2016, the contribution of an individual for their healthcare coverage could not exceed 9.66% of their household income. That number has now increased to 9.69% for 2017 reporting.
Getting expert help An ACA compliance expert can help employers implement a reliable month-by-month system of record that captures the compliance data they need, when they need it. Tango Health provides a fully outsourced ACA compliance solution. Powered by our proprietary, secure software and delivered by our expert services team, our solution combines enterprise data from multiple systems of record to achieve, maintain and report on ACA compliance. We handle ACA compliance for even the most complex organizations with dedicated compliance experts, high-touch services, and stand-alone software. By outsourcing ACA compliance to Tango, you can successfully navigate ACA compliance and reduce exposure to costly penalty risks.
To find out more about Tango’s ACA Compliance & Reporting Solutions, visit tangohealth.com or call 866.468.2646.
© Tango Health 2017
tangohealth.com | 866.468.2646
