Let’s just state the facts, ACA Reporting is hard and it is also time consuming. For those of you who are in the thick of the reporting process and hating every second, this is for you!
Here is some advice to ensure that you are able to maintain your IRS compliance and prevent next March from becoming a nightmare. Most of all, you want to prevent IRS penalties.
Consider changing the way that you approach your reporting and set aside some time each month to update your data. Addressing your ACA compliance on a monthly basis will take a great deal of stress out of your ACA reporting season next March.
Here is the information that you will need to track each month to have ship-shape records when ACA reporting comes around next year.
Your Employee Count
It is important to go over your payroll information at the end of the month and determine the final count of how many workers you employed. Keep these two terms in mind…
Full time Employees
These are the employees that you are required by the ACA guidelines to make an affordable offer of health insurance coverage to. The ACA
Full-time Equivalent Employees
This can get tricky. These are your part-time and even seasonal employees. If you have several of either, they can add up to a few full-time employees. Therefore, they must be considered in your total count. Here’s an example of this.
If you have 45 full-time employees and 10 part-time employees that work 15 hours each week, you are considered an applicable large employer. These ten part-time workers add up to 5 full-time workers. This brings your full-time employee total up to 50.
Your Offers of Health Insurance
This is just another reason that you will need to track how many hours your employers are working each month. You will need to know when it is time to make an offer of health insurance coverage to a new employee. Whether the employee accepts or rejects the coverage, you will still need this for your records.
The Coverage Status of Each Employee
Be sure that you record every month that you covered an employee under your business’ health insurance plan. If your employee turned down your offer of coverage, be sure to note that the offer was made but the employee was not covered each following month. This will help in the long run when it comes to generating the correct codes for your Form 1095-C.
Get A Full Service Solution
Do you need a last-minute solution to make sure you meet the IRS e-file deadline that is looming…on March 31, 2020? Or would you like a solution to monthly monitoring that takes all of the work off of you? Either way the experts at ACAwise have a solution to fit your filing needs. Our cloud-based ACA reporting software is here to save the day during this reporting season and beyond!