ACA Reporting Requirements for Control Groups

Control Groups & 2016 Reporting Requirements We’ve heard so much recently about the ACA, ObamaCare, Heath Care Reform, or whatever you choose to call it. Today, this law states that if you are an employer that is fully insured and have under 50 FTE’s, you don’t need to file. If you are self-insured, you have to file regardless of your FTE count. But did you know that if you are a member of a control group, you could be required to file forms 1094 and 1095 in 2016? No? Let us break it down for you. In the eyes of the IRS, a control group is considered a single employer. So, if you are a member of a control group (classified below) and collectively have 50 or more FTE's, you will be required to file these forms without facing a penalty from the IRS. In most cases, if you are a control group, you are probably aware of it. But are you set up and prepared to file your forms 1094/1095? If you answered no, contact us today to learn what ABGNCS can offer. If you answered yes but still want our help, we are here for you to take the worry away.  CONTROL GROUP DEFINED A control group, as classified under §414(c) of the IRS Code, exists when any two or more entities are connected through ownership. There are three types of control groups: 1) Parent-subsidiary, 2) Brother-sister, and 3) a combination of the above. A parent-subsidiary controlled group exists when one or more chains of corporations are  connected through stock ownership with a common parent corporation. In addition, 80% of  the stock of each corporation is owned by one or more corporations of the group, and the  parent corporation must own 80% of at least one other corporation. A brother-sister controlled group is a group of two or more corporations, in which five or fewer common owners (a common owner must be an individual, a trust, or an estate) own, directly or indirectly, a controlling interest of each group and have “effective control” (generally more than 50% of stock). A combined group consists of three or more organizations that are organized as follows: Each organization is a member of either a parent-subsidiary or brother-sister group; At least one corporation is the common parent of a parent-subsidiary, and; Is also a member of a brother-sister group. CONTACT US To learn more about how ABGNCS can support you in your reporting requirements, contact us at 800-880-4015, or email us at info@abg-mn.com.

Identifying Full-Time Employees in Accordance With the Affordable Care Act

Effective January 1, 2015 the Affordable Care Act (ACA) imposes a penalty on large employers that do not offer minimum health insurance coverage to all full-time employees and their dependents. 

So, how do you determine who is a full-time employee? A full-time employee is an employee who was employed on average at least 30 hours of service per week. 

To determine an employee’s hours of service, an employer must count:

• Each hour for which the employee is paid, or entitled to payment, for the performance of duties for the employer; and
• Each hour for which an employee is paid, or entitled to payment, by the employer on account of a period of time during which no duties are performed due to vacation, holiday, illness, jury duty, military leave or leave of absence.

Alliance Benefit Group North Central States, Inc. offers reports that are designed to calculate the number of full-time equivalent employees to help employers be in compliance with the ACA. This calculation is based on employee status, pay frequency and hours pulled from payroll for a selected period of time.

The Affordable Care Act does not require businesses to provide health benefits to their workers, but larger employers face penalties if they don’t make affordable coverage available. Enforcement of these penalties will begin in 2015, so if you would like to start receiving these reports or would like to learn more about them, please contact your Payroll Administrator.

The Author: Joan Wichmann

Payroll Manager

abgncs.com/payroll

JWichmann@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.