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Throughout 2020 we have seen a lot of changes in the workforce. This causes a lot of confusion surrounding 2020 ACA reporting for those with 50 or more full-time employees. While many people have seen a change in employment status, states are beginning to lift stay-at-home orders as the economy reopens. As an employer, you must consider the compliance implications these changes come with. Although the filing deadlines are months away, you should start thinking about it now!
If you are an employer with 50+ full-time employees:
You are required to offer health coverage to full-time workers. This means minimum essential coverage, with minimum value (the plan must cover 60% of the benefits costs), and the plan must be affordable (the required contribution does not exceed 9.86%).
With the various layoffs, furloughs, and employment classifications that have taken place over the last few months, there may be some confusion surrounding your 1094-C and 1095-C filing.
Even if an employer reduces their workforce during these few months, the employer will still be required to report their 1095-C to the IRS. Employees that have registered hours throughout the year, and were classified as ACA full-time employees, require 1095-C forms regardless of if they have been laid off or furloughed.
As an employer try to keep an accurate record of any workforce changes as they occur. A monthly ACA compliance process might help to keep track of any workforce changes.
Some important dates to be aware of as you prepare for 2020 filing include:
At SBMA, we want to help you simplify the process of providing employee benefits, so we take the 1094/1095 processing off of your plate! We have the knowledge to make sure you stay ACA compliant, and if there are any 1095 errors we will refile for you. Contact us for more information.