New IRS Resource Helps Employers Understand Health Care Law

The IRS has put everything on one page to help employers determine their Applicable Large Employer Status with their new ACA Reporting Information Center page. The IRS.gov webpage features information and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer.

The web page includes the following sections:

  • What’s Trending for ALEs;
  • How to Determine If You Are an ALE;
  • Resources for Applicable Large Employers; and
  • Outreach Materials.

Visitors to the new page will find links to:

  • Detailed information about tax provisions, including information reporting requirements for employers;
  • Questions and answers; and
  • Forms, instructions, publications, health care tax tips, flyers and videos.

Although the vast majority of employers will not be affected, the IRS advises employers to determine now if they are an applicable large employer. According to the IRS, if a business averaged at least 50 full-time employees, including full-time equivalent employees, during 2014, it is most likely an ALE for 2015.

If there are fewer than 50 full-time employees, the business may be considered an applicable large employer if it shares a common ownership with other employers. As an applicable large employer, the IRS says the business should be taking steps now to prepare for the coming filing season.

In 2016, applicable large employers must file an annual information return – and provide a statement to each full-time employee – reporting whether they offered health insurance, and if so, what insurance they offered their employees.

If a business is filing 250 or more information returns for 2015, it must file the returns electronically through the ACA Information Reports system. According to the IRS, businesses should review draft Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns, now for information on the communication procedures, transmission formats, business rules and validation procedures for returns that must transmitted in 2016.

There will be many agencies involved in getting you data. Payroll will have the necessary information concerning the W-2 wages or rate of pay needed to determine the affordability of the offered coverage if the employer relies on one of those affordability safe harbors. However, that is only part of the reporting equation. Read Payroll Masters recent article “Accurate Affordable Care Act Reporting will require payroll, HR and benefits to work together”.

If you are subject to ALE reporting requirements please call Payroll Masters, Vice President of Development, Paul Hicks direct: 707-307-6112. Payroll Masters has an Online ACA Reporting Platform.

Source: HR California |  2015 © Copyright Payroll Masters

This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please contact your employment attorney in connection with any fact-specific situation in which you intend to take significant employment action. Readers agree that they will not hold Payroll Masters in indemnity and Payroll Masters assumes no liability. Payroll Masters is not engaged in rendering legal or accounting services. Therefore, Payroll Masters assumes no responsibility for claims arising from the use or implementation of the above information.