Affordable Care Act: Rules, Records and Repercussions - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode # 98

Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent

The Affordable Care Act outlines which employers need to provide care, and what care they need to provide, yet is difficult to navigate. Here to help business owners better understand the ACA is Principal at Jackson Lewis P.C., Brian Shenker.

Brian re-joins Host Mike Vannoy to dive into all things ACA. Brian breaks down the classification requirements for applicable large employers, the nuances of forms 1094C and 1095C, and the different safe harbors employers can choose from when determining affordability.

Takeaways:

• The most important thing small business owners need to understand about the ACA is whether they are subject to the law. For businesses that are growing, they need to be planning for ACA compliance.
• The ACA does not require applicable large employers to provide healthcare, but will impose strict fines on companies that do not comply. While you can pay the fines to avoid providing healthcare, it is often more expensive to not comply.
• The ACA defines an applicable large employer as a company with more than 50 full time employees and equivalents. While the distinction seems fairly straightforward, ALEs are calculated by the hours each employee works, rather than just headcount.
• ALEs need to not only provide healthcare, but report on their providing as well. ALEs need to provide forms 1094C and 1095C to report on details including if coverage is offered and the value of the plan.
• It’s important to understand that forms 1094C and 1095C are different forms with their own filing requirements and date. These are not stapled to quarterly 941’s or your income tax return on April 15th.
• The ACA says that care offered to employees must be affordable, which is measured by 3 different safe harbors to choose from. Affordability is measured against either the federal poverty level, employee’s monthly pay, and employee W2 wages.

Quote of the Show:

• “ACA is not something that happens overnight. It’s something you need to plan for.” - Brian Shenker

Links:

• LinkedIn: https://www.linkedin.com/in/brian-shenker-53708712/
• Company Website: https://www.jacksonlewis.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006