Simplify ACA Reporting with Our Affordable and Accurate Solution
The Affordable Care Act (ACA) introduced many rules for employers, including the requirement to offer affordable health coverage to eligible full-time employees and their dependents. One of the important aspects of ACA compliance is documenting offers of health coverage made to employees.
Why is this documentation so essential?
Proof of Compliance: Documenting health coverage offers serves as evidence that an employer is meeting its ACA obligations. This documentation showcases that you are providing affordable, minimum essential coverage to eligible employees, as required by law.
Defends Against Penalties: Inaccurate or incomplete reporting can lead to substantial penalties. By thoroughly documenting offers of coverage, employers can protect themselves from costly mistakes and potential penalties related to the ACA's employer shared responsibility provisions.
Transparency for Employees: Detailed records of health coverage offers can be crucial for your employees. When you can demonstrate the availability of health benefits, employees can make informed decisions about their healthcare. This transparency fosters trust and satisfaction among your workforce.
IRS Reporting Compliance: Employers must report on the offers of coverage to the Internal Revenue Service on Form 1094-C. Accurate documentation ensures that these forms are correctly filled out, helping to prevent IRS audits and inquiries.
Audit Preparedness: The IRS can conduct ACA-related audits to verify compliance. Detailed records of health coverage offers are your best defense in such cases. They enable you to provide documentation promptly and demonstrate compliance, minimizing any potential negative consequences of an audit.
Contingency Planning: When you document health coverage offers, you can plan for any potential issues or disputes. These records serve as a reliable resource in case of employee inquiries, IRS inquiries, or even legal challenges.
Documenting offers of health coverage is an important component of ACA compliance. It not only serves as a safeguard against penalties but also fosters transparency with your employees. Accurate documentation ensures you are prepared for IRS reporting and potential audits, ultimately providing peace of mind for your organization as it navigates the complex terrain of Affordable Care Act compliance.
If you use BAS and MyEnroll360 for your enrollment and benefits administration, proof of offers of coverage is in one easy to find location. For information about BAS’ ACA services or about using BAS for enrollment management, contact your account manager or solutions@basusa.com.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
