All employers with 50 or more “full-time equivalent employees” (so called FTE’s), which is a combination of employees who work 30 or more hours per week plus all part-timer hours converted into 30 hour work-weeks, have been required to maintain meticulous records of employee hours, benefits offered, employee costs for the insurance offers, etc——–Employers with 50 or more FTE’s are deemed “applicable large employers” and must report hours, benefits, costs, etc on annual 1095-C forms to all full-time employees as well as a “summary” 1094-C form to the IRS——all of which is complex, time consuming and costly.
The recently passed House bill, the American Health Care Act (AHCA) is expected to face significant scrutiny in the Senate, to include possible “start from scratch” revisions to the House passed bill. Some experts have commented that the process of ACA “repeal and replace” will take a long time, with some thinking nothing will be passed until after the the next Election cycle, Nov of 2018
I just listened to a webinar yesterday presented by an attorney who is an expert in healthcare reform specializing in ACA/ benefits (she also has degrees from Harvard undergrad and Harvard Law). She indicated that the current AHCA, even if it passed the Senate “as is” (very unlikely), provides for “exchange subsidies” through year 2019, which thereafter converts to “tax credits”. Since the subsidies are based on information provided by employers in the 1095-C forms, EVEN IF the AHCA were enacted this year, employer reporting would still be required to determine whether individuals are entitled to subsidies——which last through year 2019 based on the recently passed House bill
Conclusion———Employers should continue to track employee data and plan on accurate annual reporting of 1095-C and 1094-C forms, just as they have done for the past 2 years. Make sure you have systems in place which correctly track employee hours and benefits offers and costs