affordable care act compliance issues for 2016 and beyond
TRANSCRIPT
Affordable Care Act Compliance Issues for 2016 and Beyond
Ted Ginsburg, CPA, JD
Catherine Davis, JD
September 27, 2016
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• ACA compliance issues in 2015—what we saw
• ACA compliance in 2016—what has changed?
• What should employers be expecting from the IRS
in the future?
• The importance of DOL compliance
• How can we make this easier on ourselves?
TODAY’S TOPICS
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2015—WHAT WE SAW
ACA COMPLIANCE ISSUES IN
• Mass confusion on the part of employers
• Poor communication by the IRS and DOL
• Unprecedented due date extensions and penalty waivers
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2015—WHAT WE SAW
ACA COMPLIANCE ISSUES IN
• Many form preparers didn’t take this seriously
• Future impact on the employers who weren’t careful
• Communication is coming from
the exchanges
• Employees who didn’t have
coverage are paying excise taxes
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WHY ARE WE FILING FORMS?
• IRS filing requirement—potential penalties for non-filing
• Employees needed the forms to
complete their individual tax returns
• Employer’s main line of defense
against excise taxes
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WHAT HAS CHANGED?
The forms themselves
• Addition of two new codes on the 1095
series of forms
• Deletion of an alternative on the 1094
series of forms
• Still in draft form; more changes may be coming
ACA COMPLIANCE IN 2016:
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WHAT HAS CHANGED?
IRS compliance
• Due dates: January 31, 2017 for 1095 series forms to be mailed to employees
• Due dates: March 31, 2017 for 1094 series forms to be electronically filed with IRS; February 28, 2017 for paper filing with IRS
• Penalties for non-filing
• Excise tax on non-covered individuals increases
ACA COMPLIANCE IN 2016:
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EXPECT FROM THE IRS?
IRS is looking to collect excise taxes from employers
• Matching the 1095 to what employees reported on
their 1040s
• Matching the 1095 to what exchange
purchasers reported on their applications
• Auditing the 1095s for certain codes
• Matching issues
WHAT SHOULD EMPLOYERS
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EXPECT FROM THE IRS?
• IRS is seeking to collect excise taxes from employees will
lead to employee complaints if the 1095s were incorrect
Matching the 1095 to what employees reported
on their 1040s
Reconciling employees who claimed coverage
who did not receive a form
Incomplete forms that didn’t list
all dependents
WHAT SHOULD EMPLOYERS
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OF DOL COMPLIANCE
ERISA requires employers to report on health and welfare benefit plans
• IRS Form 5500 Reporting & Summary Annual Report (SAR)
• DOL combines health plan enforcement initiatives with ACA compliance
• Examination triggers: employee complaints, Form 5500 and ACA filings, new DOL audit initiatives
• DOL substantially increased penalties for ERISA violations effective 8/1/2016
THE IMPORTANCE
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OF DOL COMPLIANCE
Significant revisions to Form 5500 Proposed
• Requires group health plan reporting for small insured
and self-insured welfare benefit plans
• New questions regarding plan operations,
service provider relationships
• Expands mineability of data for ACA
compliance with employer mandate
and penalties
THE IMPORTANCE
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OF DOL COMPLIANCE
Ways to limit your compliance risk
• Written plan documents and recordkeeping
• All plans required to have an
SPD—Summary Plan Description
• Wrap plan document eliminates
multiple Form 5500s
THE IMPORTANCE
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QUESTIONS
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CONTACT US
If you have any questions, please feel free to contact us.
Ted Ginsburg, CPA, JD
(440) 449-6800
Catherine Davis, JD
(440) 449-6800