ACA Replacement Proposal creates confusion among employers and insurance companies
The proposed replacement of the Affordable Care Act has created much confusion for employers and insurance companies.
We’ve received numerous calls and emails asking “Do we still need to report on Tax Year 2016?” Our answer is “Yes”.
The language in the replacement proposal states that the penalty for the employer responsibility provision would be eliminated retroactively beginning with 2016. This is causing employers to wonder if the mandate is being enforced for Tax Year 2016 during the current filing season.
We have heard employers that are not going to comply with the current law’s requirements because this proposal is eliminating the employer mandate. These employers should be aware that until the proposal passes Congress and is signed into law they are subject to significant penalties. Getting any legislation through Congress is a very difficult task and a proposal as significant as The American Health Care Act (AHCA) could be even more difficult. Additionally, AHCA will not remove the reporting obligations under Sections 6056 and 6055, which carry additional penalties for not complying. Until such time as the AHCA becomes law, we are advising employers to continue to comply or they could face significant penalties.
It is worth repeating: The proposed replacement legislation does not eliminate the employer & insurer reporting requirements under IRC §6055 and §6056, for 1094/1095B and 1094/1095C forms. Employers and insurance companies need to continue to comply with the reporting requirements as they are the law.
The Affordable Care Act can not be repealed through the budget reconciliation process. The proposed legislation can be passed, but can only contain budgetary provisions (like eliminating the employer mandate penalty). It can not repeal the ACA.
What’s an employer to do?
Has the ACA Replacement Proposal caused confusion for you? Are you an employer that is not sure if you need to report for Tax Year 2016? Did you know the deadline to e-file with the IRS is March 31, 2017?
Talk to us if you want to get on the path to compliance. If you need to file 1094/1095B or 1094/1095C forms for Tax Year 2016, talk to us. Call us if you are confused about your reporting responsibilities. ACA Management Tool® is affordable, easy to use, and will help you achieve compliance!
ACA GPS :: 470-239-5524 :: firstname.lastname@example.org :: www.acagps.com/products
The current mandates are the law and failing to comply with them could expose an employer to significant penalties.
ACA GPS is conducting business as usual. We will continue to assist employers in meeting their obligations under the current ACA regulation. Our subscribers will be informed and up to date as modifications to the current law are passed and implemented. We will keep ACA Management Tool® fully compliant with the regulation and update the software accordingly.
We will also keep our software product fully compliant with the employer / insurance company reporting provisions of AHCA. If you need an experienced software vendor to guide you through regulatory changes, talk to ACA GPS! We’ll take the confusion out of the ACA Replacement Proposal!