The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • Affordable Care Act
  • ACA Modifications: We’re Not In 2010 Anymore

Articles

ACA Modifications: We’re Not In 2010 Anymore

August 2, 2016 Robert Sheen Affordable Care Act, Health Care Coverage, Penalties
ACA Modifications: We’re Not In 2010 Anymore

When the Affordable Care Act (ACA) was first enacted in 2010, it was with the understanding that changes would be made to the ACA after the fact. Health care reform was a difficult topic to tackle even 70 years prior, so six years ago this mission was always going to face growing pains. Now, as we are halfway through 2016, it’s important to understand what some of those changes are.

As many employers are facing issues surrounding penalties for the 2015 tax year, some of this information is pertinent to avoid repeating those same mistakes for the 2016 tax year.

Here is a tip sheet of some important changes that have gone into effect as of this year:

· 2016 marks the year that the Section4980H Employer Mandate has reached full implementation.

· Applicable Large Employers (ALEs) with 50 or more full-time and full-time equivalent employees must offer health care coverage to 95% of full time employees. Employers must remember that “full-time” means averaging at least 30 hours per week, and not 40 hours per week as commonly understood. If that 95% rate is not met, penalties may follow.

· Health care “affordability” is now measured at 9.66% against the employee’s household income. If the employee’s monthly premium for the healthcare coverage exceeds affordability and that employee obtains a Premium Tax Credit, that employee’s employer may be penalized.

That employer may also be penalized if the employee who receives a Premium Tax Credit had received an offer of healthcare coverage from the employer but that coverage did not provide for “minimum value.” Minimum Value means that the “plan’s share of the total allowed costs of benefits provided under the plan” is at least “60% of such costs.”

The penalty for failing to offer minimum essential coverage has now increased (for ALEs over 100 full-time and full-time equivalents) to $2,160 per full-time in excess of 30 employees.

· Penalties for ALEs’ failure to report health care information has increased to $250 per payee statement (not to exceed $3,000,000). Of course, this assumes that the failure does not constitute “intentional disregard,” which has a corresponding penalty of $500 per payee statement and no cap.

· The Cadillac Tax has been delayed to January 1, 2020.

· Out of pocket maximum expenses have increased this year to $6,850 for individuals and $13,700 for families.

Below is an easy to read table showing penalties for late ACA filers.

TimeFiling Table _vDCv4

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Short URL of this page: https://acatimes.com/iaq
Robert Sheen

Robert Sheen

Robert Sheen, Esq., is editor-in-chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic, Inc. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

Affordable Care ActApplicable Large EmployersCadillac TaxHealth Care CoverageHealth Care ReformMinimum Essential CoveragePenaltiesPremium Tax CreditSection 4980H Employer Mandate
Related Articles How to Leverage Your Workforce Data to Meet DEI Goals How to Leverage Your Workforce Data to Meet DEI Goals
Related Articles An Employer’s Guide to Navigating the DEI&A Landscape An Employer’s Guide to Navigating the DEI&A Landscape
Related Articles Governments, Investors, & Litigators Are Focusing More on ESG Governments, Investors, & Litigators Are Focusing More on ESG
Related Articles Administration Predicts Lower ACA Enrollment by Robert Sheen  •  
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
Related Articles HHS Awards $36 Million To Health Centers by Robert Sheen  •  
2021 ACA Employer Guide — IRS & State Filing Requirements
Subscribe

Popular Posts

  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Five Resources Essential for ACA Compliance in 2021
  • The IRS is Issuing ACA Penalty Letter 226J for 2018
  • Most Frequently Asked ACA Questions for Employers and Individuals

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!