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Penalties Sky Rocket for ACA Reporting Errors
Failing to report information accurately and timely for the ACE can result in some costly penalties that you want to avoid.
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The Affordable Care Act (ACA) just got more expensive for employers who fail to report accurate and timely information for the employer mandate of the ACA, and 2015 isn’t even over yet. Beginning in 2016 when “applicable large employers” (ALEs) have to report about the 2015 calendar year, employers could face up to a maximum calendar year penalty of $3,000,000, which is double the original $1,500,000 amount.
Many notable penalties have doubled or tripled their original amounts and were signed into law two months ago under the Trade Preferences Extension Act. Now more than ever, applicable employers need to ensure they have a system set up for ACA compliance.
As a reminder of what needs to be reported, ALEs must report on whether they offered affordable health plans in the previous calendar year that contained the minimum value benefits, as outlined in the ACA. These employers also need to show that they provided information to employees regarding the health plans that were offered.
There is a one-year transition rule that will allow employers who make a “good faith” effort to file reports to not be penalized, even if the information is incorrect or incomplete. However, employers will be penalized if their reports are submitted late, as any untimely reports will make the one-year transition rule obsolete.
Stratus.hr/ISIhr has the right team in place to ensure your ACA requirements are accurate and completed in a timely manner. Please contact us today for more information.