Summer is here and Affordable Care Act (ACA) annual reporting for tax year 2015 is over. It’s time to kick back, relax and take that well-deserved vacation, right?

Well, not so fast. There are a number of ACA-related challenges that health benefits brokers should help their clients prepare for this summer:

There is no “off” switch to ACA compliance.

Compliance requirements do not start and end with annual reporting, particularly when it comes to tracking and storing employee data. Your clients need to have an “always-on” approach to ACA compliance and data collection – it cannot wait until the last minute.

Even though 2015 reporting is effectively over, employers must be taking steps now to prepare for 2016 reporting.

ACA compliance is only getting tougher.

Several changes take effect in 2016, making ACA compliance even more complex. For example, employers must offer affordable coverage to at least 95 percent of full-time employees (up from 70 percent last year) to avoid penalties. Other changes include increased limits to employee contributions and alterations in employee medical benefit waivers. This means your clients will need a strong partner who can help them understand and adjust to these changes.

New reporting requirements continue.

Form 1095-C or Form 1095-B is necessary for active employees, but employers may also need to fill out these forms for inactive employees and other individuals who receive health coverage under a self-insured plan. Each form has its own set of requirements and different processes for reporting, which can make it difficult for clients to keep track and stay up-to-date on form requirements. The IRS will be issuing new draft instructions and forms for 2016 ACA reporting this summer.

More Exchange Notices are on the horizon.

Employers receive Marketplace/Exchange Notices when at least one of their employees applies for health coverage from an ACA Marketplace/Exchange and qualifies for a Premium Tax Credit (PTC) or subsidy. This can potentially cause IRS penalty notices down the road and a severe headache for your clients. Helping clients stay on top of such notices is critical and can minimize possible financial risk.

2016 reporting is just around the corner.

There is less than a year until the next ACA reporting season. Clients need to start thinking about tracking employee data now – so they can demonstrate that their health coverage plans meet the minimum essential coverage, minimum value, and affordability requirements of the ACA.

To make the ACA reporting process easier next year, work with your clients this summer to help them better understand:

New integrated technology platforms that can automatically capture employee data and mitigate the complexities clients face with compliance;
What systems do your clients have in place to manage ACA changes and securely process data (payroll, benefits, HR, and leaves of absence); and
Different staff resources that could help navigate evolving ACA requirements and respond appropriately to Exchange Notices or IRS penalty notices and assessments.

ADP has the tools, resources, best practices and expertise available to help you take a more strategic role in helping your clients navigate ACA compliance. To find out more about ADP and why you can’t afford to take a vacation from the ACA, download ADP’s latest Action Paper.

For more information on how ADP partners with health benefits brokers to help them leverage technology to stand out and stay ahead of the competition, visit www.adp.com/brokers.

Instant Insights /

Why you can&rsquo;t take a vacation from the ACA &hellip; just yet

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