Affordable Care Act delay is a just-in-time reprieve for thoughtful compliance implementation.
by Sina Johnson, Marketing Director, Payroll Systems
Unfortunately, many employers are falling into a trap of delaying the implementation of their Affordable Care Act (ACA) administration solutions after the Treasury Department announced delays early in July 2013.
However, the only delays are a few specific provisions of the Employer Shared Responsibility (ESR). The delayed provisions refer to Internal Revenue Code Sections 6055 and 6056 requiring annual reporting from employers subject to ESR regarding health insurance coverage offered to employees. The postponement allows for 2014 as a transition year with an employer option to complete voluntary reporting.
Although there are no employer implications for not complying with ACA ESR requirements in 2014, it is important to note there is no indication that transition relief will be extended. This means that employers must be ready to comply with all ACA regulations in 2015.
When asked about the recent Affordable Care Act (ACA) implementation delays, Tony Bowden, President of Payroll Systems, replied, “Many employee benefits advisors, legal and accounting firms have done an excellent job identifying specific compliance areas of ACA concern for their clients. However, many employers are still unaware that ACA compliance monitoring and reporting will be required on an on-going and continuous basis, not just a snap-shot in time.”
For example, many employers subject to ACA ESR made a decision to determine employee benefit eligibility through a 12 month Measurement Period. Without additional transition relief, the employer Measurement Period for employee benefits renewing January 1, 2015 will include on-going reporting and monitoring beginning January 1, 2014 through December 31, 2014.
Alert: Do Not Delay Your ACA Planning
It is important to remember that all other ACA requirements are moving forward as of January 2014. ACA compliance management requires a new level of record keeping, monitoring, and reporting that has never before been required. Instead of returning to business as usual, companies should consider these last months of 2013 as a time to implement thoughtful solutions for January 2014.
About Payroll Systems
For additional information about ACA Compliance Administration and Payroll Systems, please contact Payroll Systems, or visit www.payroll-us.com.
Address: 1990 N. California Blvd., Suite 18, Walnut Creek, CA 94596 Phone: 800.696.8004; Fax: 925.939.5927
* Payroll Systems recommends clients obtain specific guidance from their individual employee benefits, legal and tax advisors regarding compliance specific to their unique business. The information herein is provided for general information purposes only and not a written opinion or intended to replace advice of a qualified legal, tax or other professional advisor.