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Large Employers Face Upcoming ACA Deadline


Posted on Monday, January 01, 2018


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Large employers have a deadline coming up under the Affordable Care Act (ACA) and while the law may have seemed uncertain at times, the deadlines – and the penalties – are real.

To avoid potential fines, Applicable Large Employees (ALEs) must complete and furnish IRS form 1095-C to their employees by January 31, 2018 as part of the process of determining that all eligible employees have adequate health insurance. The forms provide information to employees about the health care coverage offered by their employer.

"ALEs" are employers who had 50 or more full-time or full-time equivalent employees (FTEs) "on average during the prior year," with some exceptions. The law defines "full-time" employees as those who work 30 hours a week or more. The number of FTEs is calculated under a formula that considers the combined hours worked by all employees, including part-time workers

Large Employer Reporting Requirements Under the ACA

Businesses that qualify as ALEs have shared responsibility under the Affordable Care Act, which includes the responsibility to offer health insurance that meets ACA standards for "minimal essential health coverage" to their full-time employees or potentially make a shared responsibility payment to the IRS.

Applicable employers must report to the IRS, by February 28 on paper or by March 31 electronically, whether their eligible employees have the required minimum coverage. The final forms and instructions were published by the IRS in October.

Visit the Internal Revenue Service site for complete information on deadlines and requirements, or for help in determining whether your business qualifies as an ALE under the ACA.

Time Rack Time and Attendance Solutions Can Help

If you are getting bogged down by ACA requirements, Time Rack has a number of scalable and comprehensive time and attendance tracking solutions to meet your needs.

Users of Time Rack time and attendance software can use the system to calculate their full-time and full-time equivalent employees under the ACA by tracking employee hours over a custom-selected time frame.

Contact us to learn more about how our time and attendance solutions may help with your ACA reporting