Wednesday, February 14, 2018

The Affordable Care Act Employer Mandate Explained

As a human resources professional, you are well aware of the slew of government reports your business must file in order to stay compliant. Since we have established the Affordable Care Act is here to stay (at least for now), the ACA filing penalties are also here to stay. So what happens if your company does not comply with ACA? Check out what you need to know about the employer mandate.

The Affordable Care Act Employer Mandate Explained

Employers with 50 or more full-time employees are required to provide affordable health insurance that meets a set federal minimum coverage and value.

Important 2017 ACA Deadlines

March 2nd: Provide Forms 1095-B or 1095-C to Full-Time Employees
February 28th: IRS Paper Filing Deadline for Form 1095-B or 1095-C
March 31st: IRS E-filing Deadline for Form 1095-B or 1095-C

The Employers Shared Responsibility provision requires all Applicable Large Employers (ALEs) to either provide affordable health insurance to the majority of their 50 or more full-time employees or pay a per-employee fine. Fines will be used toward a publicly provided system that covers people without private insurance.

“Pay or Play” Penalties

“No Offer” Penalty
Employers did not offer coverage
$2,260 ($188.33 per month) per full-time employee

“Unaffordability” Penalty

  • Coverage offered is deemed unaffordable according to ACA standards
  • $3,390 ($282.50 per month) per full-time employee 

Failure to File/ Inaccurate Filing
  • $260 -$520 per form
  • Cannot exceed $6 million in total

Failure to E-File
  • If your business files 250 or more forms, they are required to e-file
  • $260 per form penalty

How to Avoid Obamacare Mandate Penalties

At ACAwise we are dedicated to helping you file your ACA Forms correctly the first time to avoid any ACA filing penalties! But you are going to need to hurry up and get started today! The deadline for providing Forms 1095-B or 1095-C to Full-Time Employees in March 2nd. There is only so much we can do when time keeps marching on!

If you have any questions about the ACA e-filing process, do not hesitate to give us a call at (704) 954-8420 or send us a live chat during our office hours: Monday through Friday 9:00 AM to 6:00 PM EST. You can also email us at any time at, and we will get back to you as soon as possible!

E-File ACA Today!

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