ACA Compliance: Full-Time, Part-Time and Temporary Employees
Navigating reporting with multiple different types of employee working hours can be quite challenging. Since the enactment of the Affordable Care Act, questions and debates have arisen about the impact of this law on third-party staffing arrangements. Many companies offer temporary and part-time employees lower-tiered benefits, if any. If you have employees working a variety of hours, how can you ensure your business is ACA-compliant?
We have developed this guideline to ACA compliance for full-time, part-time and temporary employees to help you understand the definitions of different employees and navigate ACA compliance.
We are neck deep in the current ACA reporting cycle and while the main focus of employers should be meeting their fulfillment and e-filing deadlines, it is important they take note of a clarification recently made by the Internal Revenue Service. The IRS has stated that penalties for noncompliance with the Employer Shared Responsibility Tax have no statute of limitations on when the IRS can impose them. This means that employers are never “safe” or “out of the woods” from receiving penalty letters, even from the very first reporting season, which happened in the spring of 2016. This clarification came from the Chief Counsels Office at the IRS, and the entire memorandum can be read here: https://www.irs.gov/pub/irs-lafa/20200801f.pdf
Affordable Care Act (ACA) compliance is likely the last thing on anyone’s mind during an acquisition.
But that would be a mistake.
Even when everything looks and feels similar after one company purchases another – the same employees, the same company name – that’s not true about their ACA reporting.
Is the Affordable Care Act (ACA) going away, or is it here to stay? This has been an ongoing debate ever since the statute was signed into law.
If you’re an applicable large employer (ALE) that hasn’t yet filed your 1094/1095-C and 1094/1095-B forms with the IRS, and your plan is to paper file, we have some bad news for you. The deadline for Affordable Care Act (ACA) paper filing was Feb. 28, 2019. Your time has run out.