ACA Penalties: What You Need to Know as 2017 Approaches
ACA Penalties: What You Need to Know as 2017 Approaches

ACA Penalties: What You Need to Know as 2017 Approaches

The Affordable Care Act (ACA) continues to loom large in the business world, impacting companies both large and small. As regulations that were initially delayed are starting to come to fruition, companies need to keep up with legislation changes and updates. This requires due diligence, expert management and a dedication to ensure new compliance guidelines are met. New changes mean new penalties for those who knowingly, or even unwittingly, fail to follow the more than 40,000 pages of regulations set forth by the ACA. Here are just a few of the changes and corresponding penalties to look for in the coming months.

Health Plan Transition Relief
Until now, the Employer Shared Responsibility payment came with transition relief for applicable large employers (ALEs). Companies were given extra time to make sure that the minimum percentage of employees were covered under the ACA. Not anymore. That transition relief expires on January 1, 2017. This means employers with an average of 50 employees or more must be compliant (95% of full-time employees insured) or face penalties. According to IRS Notice 2013-54, this penalty may include a $100/day tax per applicable employee, which can bring the yearly penalty to $36,500 per employee.

Reporting Errors
Good faith filing is coming to a close for employers when dealing with 1094-C and 1095-C forms. Any errors in reporting or processing these forms will now face IRS penalties, which means incorrect, incomplete or late submissions will cause stiff penalties. With a fine of $250 per form, fees can reach a maximum of $3,000,000 according to IRC section 6724.

Patient Protection Notice
The often simple step of providing health care plan participants with a written notice of their patient rights and protections is sometimes overlooked, mostly because the employer believes the insurer will provide a copy. In some cases, the insurer believes the same of the company involved. Unfortunately, this misstep will now cost an employer $100/day, with a $500,000 max penalty.

It’s obvious that compliance is becoming a paramount concern, as the Department of Labor intends to audit every applicable company for ACA adherence by the end of 2018. With the standard penalty sitting at $500,000 maximum (other fines can differ based on violation), companies must become compliant or face existential jeopardy. Competence in finding a solution for ACA adherence is critical, as pleading ignorance of regulations is no longer an option for employers.

Paycor has been helping companies large and small make the right choices when dealing with ACA compliance. Let us show you how our ACA Connect solution and dedicated team of ACA experts provides the help you need, both now and in the future.

Source: IRS.gov


subscribe to Paycor's Resource Center

Subscribe to Our Resource Center Digest

Enter your email below to receive a weekly recap of the latest articles from Paycor's Resource Center.

Check your inbox for an email confirming your subscription. Enjoy!

More to Discover

Webinar: EEO-1 Reporting FAQs

Webinar: EEO-1 Reporting FAQs

Based upon the questions you asked we came up with a list of Frequently Asked Questions to help guide you through the changes of the Equal Employment Opportunity Commission (EEOC) to collect 2018 employee pay data and hours worked by Sept. 30, 2019. The additional data required by the new ruling and expanded EEO-1 form is very significant. Is your HR team ready? Watch as we discuss the answers to your questions and how Paycor can help.

Case Study: Camp Woof

Case Study: Camp Woof

Years of manually entering payroll combined with the frustration of paying for every custom report finally took its toll on Camp Woof administrators and led them to seek an automated time and payroll product with a robust reporting feature. “My employees now have easy access online to get their paystubs and information. Payroll is on time and the only mistakes are ones that I make and those are easily fixed. The reporting is great.”—Pete Grossman, Managing Member, Camp Woof Discover how Paycor’s Human Capital Management solution helped this pet paradise in Atlanta streamline payroll, giving the owner and managers time to focus on what matters most—the animals.

Case Study: Humane Society of Boulder Valley

Case Study: Humane Society of Boulder Valley

After years of dealing with cumbersome and unreliable HR software, the Humane Society of Boulder Valley turned to Paycor for a modern, efficient Human Capital Management solution. “Paycor provided improved functionality and additional services for the same price we were paying with our old vendor. [We received] a better value and a more intuitive product.” —Jennifer Schwartz, Director of Human Resources, Humane Society of Boulder Valley Read more about HSBV’s experience using Paycor and how our solutions can meet the needs of other nonprofit organizations.

Pay Equity and State-by-State Laws

Pay Equity and State-by-State Laws

When you’re managing payroll, it’s tough enough keeping track of – and maintaining compliance with – federal and a single state’s laws. But organizations that have operations in more than one state often experience challenges when it comes to tracking the always-changing requirements of pay equity laws. Complicating matters even further, some states such as California and New York, have separate laws governing cities and counties. We’ve created this handy chart to help you get a quick view of each state’s laws. State-by-State Pay Equity Laws State Law/Citation Covered Employes Provisions Alabama None None None Alaska Employment Discrimination Act Alaska Stat. Ann. § 18.80.220(a)(5). Private companies and Public employers Employers can’t...