Remaining Compliant In 2015 With Health Care Reform
The Affordable Care Act For 2015: Is Your Business Ready?
While it may seem hard to believe, we are all officially into the final corporate quarter of 2014. With the onset of 2015 swiftly approaching, business owners in every industry are looking ahead and preparing to make next year their best one yet. Of course, for many business owners, they are not simply carrying the burden of planning for success in the upcoming year; they are also attempting (often futilely) to carefully navigate through the pending rules and regulations of the 2015 Obamacare health care reform act.
Staying Compliant With The 2015 PPACA Rules And Regulations
If you’re a business owner managing an organization of any size, there are a litany of rules and regulations that you must adhere to in order to remain compliant with the mandates of the Affordable Care Act, which goes into effect on January 1, 2015. Some of the key considerations you’ll have to determine to remain in compliance and avoid penalties include:
- Calculate size of your operations
- Pinpoint total number of eligible employees
- Maintain minimum value requirement
- Ensure plan proves “affordable” (less than 9.5% of entire household income)
Most importantly, any business owners tasked with various employer mandates must also provide specific reporting to prove corporate compliance. Once your company size has been calculated, you will be responsible for specific forms and documentation that must be filed.
Non-Compliance Can Mean Penalties For Your Business Operations
Failure to comply with any or all of the employer mandates found in the 2015 Affordable Care Act could incur hefty penalties for business owners. Obamacare penalties are broken down into two specific categories based on type of infraction. Type “A” penalties apply to employers who have specific Employer Mandates, but neglect to offer coverage to the required percentage of employees. The resulting penalty? $2,000 annually for each neglected employee (after the designated exclusion count).
There are also type “B” penalties to consider as well. Businesses will fall into the B penalty category by failing to meet either the minimum value requirement or affordability requirement. B penalties can also be incurred should one full-time employee garner a premium subsidy elsewhere.
Are you concerned that your business may not be ready for the 2015 Obamacare employer mandates? The Payroll Company can help. Contact us today so we can prepare you for the Affordable Care Act and ensure that your organization remains compliant at all times.