January 23, 2023

IRS ACA Compliance Reporting Updates

What is ACA Compliance?

The Affordable Care Act requires organizations to offer affordable insurance with minimum essential coverage and file the corresponding forms by the designated deadlines.

2023 ACA Compliance Changes & Penalties

ACA Compliance Penalties, 2024

What is the compliance threshold?

The ACA mandates that large employers, those with over 50 full-time equivalent employees, offer affordable minimum value coverage to “substantially all” full-time employees. “Substantially all” means 95%.

Failure to identify full-time employees and offering coverage or contributing less than the ACA affordability standards may subject your company to penalties.

While an employer may intentionally or unintentionally exclude up to 5% of its employees based on this 95% rule, the employer’s actions cannot be done in a discriminatory fashion.

What are the penalties?

Penalty A: Failure to offer coverage to 95% of full-time employees

Penalty B: Failure to provide affordable, minimum value coverage 

What determines affordability?

The amount of household income an eligible individual can contribute toward the cost of coverage in order for coverage to be considered affordable.

What stays the same?

Failure to file forms 1094/1095 with the IRS = $310/form 

How Ameriflex can help:

Ameriflex can mitigate the risk by mapping out and executing compliance requirements for you. 

Read more about compliance in our Compliance Basics article and our Compliance Services Guide.

What’s in this article?

Other Recent Posts
The Consolidated Appropriations Act (CAA) was passed in 2021, and although it brought significant changes that will continue to impact employers offering group health insurance and their employees, many organizations still haven’t made changes to meet the mandates. What are the key requirements of CAA legislation that employers need to act on? Gag Clause One...
What is the Transportation Benefits Program Act? The State of Illinois recently passed the “Transportation Benefits Program Act” that will go into effect January 1, 2024, and require employers with 50 or more employees located in specific areas to offer a pre-tax commuter benefit to “covered employees.” Employees who take advantage of the benefit can...
SPD WRAP Ultimate Guide
July 10, 2023
What you need to know about SPD WRAP A Summary Plan Description (SPD) is an ERISA requirement for most employers offering group benefits. It’s the document that outlines the details and terms of a group’s health plan in understandable language for all eligible plan participants. ERISA guidelines dictate what information is to be included, to...
Stay Updated

Join us to stay on top of the latest healthcare news, legislation and product features from Ameriflex

We value your privacy
We will not rent or sell your information