ACA Compliance

The law

The addition of section 6056 to the Affordable Care Act (ACA) makes it mandatory for an Applicable Large Employer (ALE) to adhere to certain guidelines as laid down in the said section. Every ALE company is required to assure that at least 95% of their employees and dependents have are covered by compliant health insurance. An ALE company has to keep records and file annual returns with the IRS and provide employees a copy of their health insurance coverage.

AMGtime helps companies to:

  • See if their business is considered ALE or not based on the ACA rules
  • Track accuracy of look back periods due to 3 types of federally protected unpaid leave of absences.
  • Generate 1094-C and 1095-C reports which need to be filed with the IRS at the end of each year.

Why time and attendance

Most likely you are already tracking the time and attendance of your employees for other reasons, such as reporting, audits, close control of labor costs, payroll, etc. Who better than your time and attendance provider to run a report on all your employee's statuses and hours to decide if you are considered ALE or not based on the ACA requirements?

Penalties

The annual penalty for not offering required coverage generally is $2,000 per employee minus 30 full-time employees.

200 FTE company –
30 Excludable Employees =

170 Employees
[that penalty will be based on]

Right Arrow

170 X $2000 =
$340,000 PENALTY

Penalty levels will be different if coverage is offered but does not meet the affordability and minimum value test, and/or an employee obtains a marketplace subsidy.

What To Do

Check out our time and attendance solution by clicking here and/or call us at 1 (800) 960-3735.

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