As you may know, the Affordable Care Act (ACA) is an extensive healthcare legislation that presents significant challenges for the temporary staffing industry. Periodically, changes which could impact staffing firms are made to the ACA, and there is a major change coming into effect as we approach the end of 2015. [more]
At Advance, we are here to inform you of these changes, offer advice and help you plan for continued ACA compliance. That’s why in this blog post, we’re outlining the potential impact of a recent ACA update that could cause major waves for temporary staffing firms:
1094 and 1095 Forms
This fall, the IRS released the final versions of the 1094 and 1095 forms, which require employers who averaged 50 or more full-time employees or full-time equivalents in the prior calendar year to file information returns with the IRS and provide statements about healthcare coverage status to their employees. These forms are used to assess if minimal essential coverage was offered, and to determine if a pay or play penalty is applicable.
How the Updates Work
If a full-time employee has not signed on for healthcare coverage through their employer or the Health Insurance Marketplace, it is up to the IRS to determine if the employee or the employer is responsible for paying the penalty. In 2015, the employer may be responsible for the penalty if they employed an average of 100 or more full-time employees or full-time equivalents per month in 2014, and didn’t offer their eligible employees insurance or offered insurance that was unaffordable or didn’t provide certain benefits. Starting January 1, however, all temporary staffing firms that employed 50 or more full-time employees in the previous calendar year (in this case, 2015) will become subject to these penalties as well.
How Advance Partners Can Help
As your strategic partner, Advance will help guide your staffing firm with valuable information and advice. We will let you know when forms are due and help you fill out your documentation correctly. Our team is here to help you in any way we can, so if you have questions or concerns about this update, please do not hesitate to contact us.
For more information, please visit the ACA Planning section of our website.
DISCLAIMER: This article is made for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney in your state. The information in this article may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct or up-to-date.