4 Things Businesses Need To Do After The SCOTUS Ruling
The subsidies are a central part of the ACA. If the Supreme Court had dissented (allowing subsidies only for workers with access to state exchanges—16 states in total), policymakers would need to rethink much of the Act.
So, what does this mean for businesses? The Affordable Care Act is here to stay. Here are four things employers need to do to prepare:
- Know if you qualify as an applicable large employer. The ACA only applies to applicable large employers (ALE). You’re an ALE if you have at least 50 full time or full-time equivalent employees during the previous calendar year. (If you’re not an ALE, be sure to look into ACA tax credits for small businesses.)
- Establish your determination process. The determination process gives ALEs time to identify which employees qualify as full time (or full-time equivalent) under ACA and must be offered coverage. Employers can customize their process within the boundaries set by the IRS.
- Know your reporting obligations. Starting in 2016, ALEs must file new forms with the IRS regarding the health care coverage they provide to qualifying employees. Knowing what information those forms require will save you time—and fines.
- Have a long-term strategy to limit costs. Look ahead to long-term strategies to reduce ACA-related costs. For some companies, it means managing part-time workers more effectively to reduce accidental full-time equivalency. For others, it may be cheaper to pay ACA penalties than offer coverage. Explore your options.
With the ACA moving full steam ahead, stay compliant by knowing your rights, options and obligations.
For more information on streamlining ACA compliance, contact a C.T.E. Systems Consultant now.