how much could aca reporting actually cost?
TRANSCRIPT
Before You Begin...It’s probably a good idea to read the instructions, right?
12,8444,5011,344
Forms 1094-C & 1095-CInstructions
The Declaration of Independence
The United StatesConstitution
HamletPrince of Denmark
Words WordsWordsWords
Completing the Forms
How Much Could ACA Reporting Actually Cost?
How Much is Your Time Worth?You can’t put a price tag on this kind of thing, can you? Let’s say you have 75 FTEs. Here’s an estimate of where your time (or money) could go each year.
Know the Rules
Whether you’re doing it yourself or outsourcing, here’s a look at what it really takes to completeForms 1094-C and 1095-C as an Applicable Large Employer.
To truly be prepared for ACA reporting, it’s important to know the law, the regulations, and what rules apply to business owners.
Start reading on January 1st and you’ll wrap up on August 25th (assuming you don’t sleep and the rules don’t change).
44 MillionRelated Rules for Businesses as Filed in the Federal Register
Get comfy — you’re readingfor two days straight.
384,007Patient Protectionand Affordable Care Act
Words Words
The MinimumYou read the instructions and kept careful track of the required data each month.
The OutsourcerYou elect to pay your accounting professional or financial advisor (assuming they have access to the applicable data, of course).
The In-house ExpertYou read every word of every regulation and compile all the necessary data each month for the entire year.
Reading (Instructions) 2 hrsMonthly prep (10 min per employee, per month) 150 hrsYear-end prep 8 hrs
Monthly prep (5 min per employee, per month) 75 hrsYear-end prep 4 hrs
Reading (Everything) 5,700 hrsMonthly prep (10 min per employee, per month) 150 hrsYear-end prep 8 hrs
You know the rules? Great! Time to begin — all you need is...
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Paychex Can Help!We’ve filed over 2 million IRS forms for our affected clients and we can help you stay in compliance. Contact us for more information: (844) 802-2248
31,903
$10,82379 HRS @ $137/HR**=
peryear
$8,000160 HRS @ $50/HR*=
peryear
$292,9005,858 HRS @ $50/HR*=
peryear
One (or more) Forms 1094-Cincluding an Authoritative Transmittal, to know whether you need to file multiple Forms 1094-C, and to include your monthly ALE member information and any Aggregated ALE Group information, if applicable.
A Form 1095-C (or a substitute form) for each employee who worked full-time for any month of the calendar year and any part-time employee enrolled in a self-insured plan.
A lot of data, includinghours-worked info, whether or not insurance was offered, affordable, and met minimum value and coverage requirements, for each full-time (or full-time equivalent) employee and their dependents, each month. Complete requirements are available here (but you already read those, right?).
*Based on median owner/operator salary as reported by PayScale.com, June 2016. http://bit.ly/299e48n**Median of average hourly billing rates, 2016 MAP Survey, as reported by Journal of Accountancy, January 2016.
The information contained above is not tax or legal advice. These issues are complex and applicability depends on individual circumstances. Businesses should consult their benefits advisor, tax professional, or legal counsel before taking action on any of the items identified above. Times listed are estimates for informational purposes only; actual time spent may vary on an individual basis. Word counts based on available documentation as of December 2014 and may vary over time (except for those historical documents referenced and Hamlet, which doth not change).