Employer Updates

ACA Updates

1094/1095 Deadline Dates Extended

It was announced that ACA reporting under Section 6055 & 6056 will be delayed (by approximately 2 months).  1095-C and 1094-C tax forms will be due as listed below.  The C series of forms need to be completed by groups of 50 or more full time employees, including full-time equivalent employees, and all size self-funded groups.  For any questions or concerns feel free to contact our office!

6055 & 6056 Reporting Form

Due to Employee

Due to IRS (Paper)

Due to IRS (Electronic)

1095-C

3/31/2016

5/31/2016

6/30/2016

1094-C

N/A

5/31/2016

6/30/2016

Employer Shared Responsibility Penalty Increase for 2016

All applicable large employers (ALE’s) are employers with 50+ full-time or full-time equivalent (FTE) employees. The ACA requires them to not only offer health insurance, but also affordable coverage. This coverage is deemed affordable by the cost to the employee being no more than 9.6% of their income. The penalties for an ALE not providing coverage to its employees or for not offering affordable coverage have increased for 2016.

4980H – Employer Shared Responsibility (Mandate) Penalty

Penalty Type

Offer Requirement

2015

2016

Penalty A (Max)

MEC

$2,080

$2,160

Penalty B (Per Person)

MV & Affordable

$3,120

$3,240

ERISA Compliance

Definition:  ERISA (The Employee Retirement Income Security Act of 1974) is a set of federal laws and regulations that govern welfare benefit plans and qualified retirement plans.  Employers must have a written plan document and are required to deliver a summary of it, a Summary Plan Description (SPD), to their participants regardless of how many employees participate.  The SPD is the main vehicle for communicating plan rights to participants.  

Does ERISA apply to you?  Most employee benefit plans are subject to ERISA’s requirements whether they are insured or self-insured.  Almost every employer who offers health insurance benefits, regardless of its size or number of employees must comply with ERISA.  The only exceptions are church and government plans.  This has been a requirement since the inception of ERISA, however, it has not been actively enforced by the Department of Labor.  We have learned that the Department of Labor is now going to be actively policing groups to ensure they are in compliance.  

We at Wevodau Insurance & Benefit Strategies want you to be compliant with ERISA and all other ACA requirements.  We have partnered with a local firm who specializes in Summary Plan Document preparation and provide services to help employer groups be compliant with ERISA guidelines.  We will be addressing ERISA compliance with you during your renewal.