Quick Guide for Prevailing Wage Contractors
When regulations on the Affordable Care Act was signed into law last March 2010, it created a change to the US health care system and caused extra anxiety for people in the human resources group. The new regulation added new requirement from the HR group of companies: they should file employee health care data with the IRS. Penalties were in place for non-complying employers and business owners.
ACA under the Trump Presidency
When Trump was voted President of the United States, he was clear on his stance: the repeal and replacement of ACA. However, as with any big transformation and changes, it will not happen overnight. For months that followed, small business owners and employers awaited for the verdict. Many were hoping that the filing of their employee health care data with the IRS would be abolished.
The bill to repeal the ACA however, failed to pass the Senate, and so the ACA is seen to continue. Employers and human resources must maintain compliance with ACA employee health coverage and annual reporting obligations.
Checklist for ACA Compliance
Applicable Large Employers
If you are an employer with at least 50 full-time employees during the prior year, then you are considered an ALE (Applicable Large Employer). If you fall under this category, you are required to give health care coverage to your full-time employees.
It is therefore important for your company to keep accurate employment records, including the time your variable-hour employees work.
Affordable Health Care Benefits
One important provision in the Affordable Care Act is that applicable large employers must provide affordable health care benefits for their workers. There are three factors by which you can measure affordability of your benefits.
lW-2: The employee is charged not more than 9.66% of current year wages per Box 1 of their W-2 file.
lRate of Pay: The employee is charged not more than 9.66% of his monthly pay at the start of the coverage period.
lFederal Poverty Level: The employee is charged not more than 9.66% of the most recently published mainland federal poverty level for a household with only one member.
Work with a Trusted Third Party Administrator for your ACA Compliance
ACA compliance and reporting should be a priority of your human resources department. Regulations and requirement constantly change, so it is critical that you partner with experts who understand the law. ARCHER JORDAN has been helping small businesses and government contractors comply with state and federal laws. Call us now!