The Affordable Care Act is About to Make Things Complicated

When the Affordable Care Act was passed, the idea was simple – affordable healthcare for everyone. But soon after, we experienced the first complications of implementing such massive healthcare reform

Thanks to the Affordable Care Act (ACA), business tax preparation for 2016 just got a lot more interesting – or a lot more confusing. 

What’s changed in healthcare?

The ACA now requires that employers with 50 or more full-time employees file tax forms, including Forms 1095-C and 1094-C. These specific forms prove to the IRS employees have insurance.

Not only have the new ACA regulations made things complicated for individuals, but the new rules have also complicated Human Resource functions and reporting requirements. Companies now face additional compliance risks, increased complexity and confusion about the new system.

Big issues with the Affordable Care Act

ACA compliance reporting puts a significant strain on payroll and HR departments as well as the payroll/HR service providers used by these companies.  The regulations have caused most companies to spend more money on outsourcing compliance reporting. While outsourcing has helped many companies, businesses still find themselves spending more time making sure initial filings are correct. 

The ACA’s effect on Payroll/HR providers

Payroll providers have seen an increase in revenue as they take on ACA reporting and filing responsibilities. However, businesses are searching for ways to comply and reduce payroll expenses. Many large payroll providers offer human resource departments with a solution. They help manage crucial employer-related elements of health care reform. This includes determining ACA coverage eligibility, assessing affordability, and providing a critical regulatory management solution to help identify and address compliance issues. 

 

If history is any indicator, the IRS may be less strict this year than they will be moving forward. Figuring out the ACA reporting system, product or HR solutions that work best for your company is important for future success. By 2017, the IRS will likely expect your business to have all its ducks in a row, and will not take compliance issues so lightly.

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