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Last Second Help with Marketplace Notification

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Time is running out! Today is the final day to comply with the federal government’s Patient Protection and Affordable Care Act provision to notify employees of their health care exchange options and information regarding their existing insurance plans, if applicable.

With ACA, employers have good reason to be more confused than ever, especially with the Oct. 1 Notice of Marketplace requirement. In a recent survey conducted by Paycom, 72 percent of employers said they “could know more” about ACA requirements, while 18 percent reported knowing nothing about the law.

Those aren’t particularly shocking statistics, but what is stunning is the number of employers – 61 percent – who had yet to notify employees of the exchange.

Potential for noncompliance fines aside, employers should educate their employees on ACA’s sweeping changes, including the establishment of health insurance exchanges opening today nationwide.

Because the exchanges have been a hot topic since ACA’s inception, employees will be expecting some type of notification. Those confused about the new law will seek guidance from employers on what steps to take before Jan. 1, 2014, when those who fail to have health insurance will begin facing penalties of their own.

Effective today, employers are required to convey the following information to their workforce:

  • the existence of exchanges,
  • a description of the services provided by exchanges,
  • how the employee can find and contact an exchange,
  • that the employee may be eligible for a tax credit if the total cost of benefits provided by the employer’s plan is less than 60 percent of his or her income, and
  • that employees choosing to enroll with an exchange may lose the employer’s contribution toward health coverage.

How Paycom Can Help
So where to start? Right here:

  • Visit the U.S. Department of Labor’s website to download the Model Notice of Exchange, whether or not your company offers health insurance.
  • Send the notice to employees along with an FAQ providing answers to employees’ common questions regarding health insurance options on the state and federal levels; HealthCare.gov is a good resource for such information.
  • For information on how health coverage will affect employees’ taxes, the IRS website addresses ACA tax provisions.

Paycom has helped employers across the country stay a step ahead of ACA requirements. Paycom’s continuing webinars walk employers through features of Paycom’s cloud-based, workforce-management application that prove especially useful for ACA compliance.

For the Notice of Exchange requirement, Paycom offers electronic delivery of notices to employees with its Document Management/On-Boarding features. Employees can view, sign and acknowledge the notice online, as well as refer back to their rights at any time through the Employee Self-Service portal.

It’s not quite too late to notify your employees … but time is ticking. Empower your employees with the reform information they need today.

The content of this blog is intended to keep interested parties informed of legal and industry developments for educational purposes only.  It is not intended as legal opinion or tax advice and should not be regarded as a substitute for legal or tax advice.



Author Bio: Shaw holds a Bachelor of Science in Education from the University of Oklahoma. The Mill Creek, Washington, product has served both Paycom employees and clients as a Corporate Trainer for the past 18 months. Her role includes extensive research in health care reform and the reporting requirements associated with the Affordable Care Act. Shaw also coordinates with the training team to develop webinars, training materials and educational white papers for Paycom clients on current events, including government regulations affecting employers across the nation.

ACA ‘Cadillac Tax’ Delayed to 2022

ACA ‘Cadillac Tax’ Delayed to 2022

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The short-term spending bill that ended the government shutdown on Jan. 22 included a small provision that again delayed the Affordable Care Act’s (ACA) “Cadillac tax,” now to 2022.

So nicknamed because it targets employer-sponsored health plans with the most generous level of benefits, the Cadillac tax originally was to take effect in 2018. In 2015, the effective date was pushed to 2020, and now the new bill pushes the effective date two additional years into the future.

When – or if – the Cadillac tax goes into effect, it will impose a 40% excise on the cost of employer-sponsored health coverage exceeding a certain dollar value per employee. The dollar value would have been $10,200 for individual coverage and $27,500 for family coverage in 2018, had the tax not been delayed. The law calls for the amount to be adjusted annually with growth in the consumer price index.

How does this affect Employers?

Employers do not have to contend with the tax for an additional two years. The IRS has not yet issued regulations addressing implementation; with this additional delay, the agency likely will not do so in the near future.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in ACA, Blog, Compliance, Featured

Erin Maxwell

by Erin Maxwell


Author Bio: As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

Deadline Extended

Employer Deadline Extended for Furnishing 2017 ACA Forms

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Distribution of 2017 Affordable Care Act (ACA) Forms 1095-B or -C to your employees has been extended.

As issued in Notice 2018-06, the IRS has extended the deadline from Jan. 31 to March 2. (However, the deadline to provide Forms W-2 and 1099 to employees and contract workers remains as Jan. 31.)

Filing deadlines unchanged

While the deadline to furnish forms was extended, the filing deadlines remain the same: Feb. 28 for paper forms, and April 2 for electronic forms.

IRS Notice 2018-06 emphasizes that employers who do not comply with the due dates for furnishing or filing are subject to penalties under sections 6722 or 6721.

Good-faith transition relief extended

The IRS also announced the extension of good-faith transition relief. This may allow an employer to avoid some penalties if it can show that it made good-faith efforts to comply with the information reporting requirements for 2017.

This relief applies only to incorrect and incomplete information reported on the ACA forms, and not to a failure to file or furnish the forms in a timely manner. Additionally, the IRS stated it does not anticipate extending either the good-faith transition relief or the furnishing deadline in future years.

Contact a trusted tax professional if you have questions on how this may affect your business specifically.

Click here to read more about how the ACA is affect by the new Tax Cuts and Jobs Act.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

Tags: , , , ,
Posted in ACA, Blog, Compliance, Featured

Erin Maxwell

by Erin Maxwell


Author Bio: As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

Employers Unaffected by ACA Changes in New Tax Law

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On December 22, President Trump signed the Tax Cuts and Jobs Act. The bill includes a provision that reduces the penalty for not complying with the Affordable Care Act’s (ACA) individual mandate to $0, effectively removing the penalty for individuals who do not have health insurance coverage after the effective date of Jan. 1, 2019.

However, this update will not impact employers, since the law does not remove the employer mandate (the requirement that large employers offer health insurance coverage to their full-time employees or pay a penalty) or the associated employer reporting requirements. Large employers subject to the mandate still face penalties if they fail to comply with either, and the IRS has begun sending out notices with preliminary assessments of the employer shared responsibility penalty for tax year 2015.

Employers subject to the employer mandate should continue to comply and be prepared to file Forms 1094 and 1095 with the IRS in accordance with the normal deadlines.

For the 2017 tax year, the deadlines to provide Forms 1095-C to employees is Jan. 31, 2018.  The deadline to file Forms 1094-C and 1095-C with the IRS is Feb. 28, 2018 if filing paper forms, and April 2, 2018, if filing electronically.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

Posted in ACA, Blog, Compliance, Featured

Erin Maxwell

by Erin Maxwell


Author Bio: As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

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