Compliance Overview – Using Affordability Safe Harbors to avoid ACA Penalties
The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty to the IRS. This employer mandate is also known as the“pay-or-play” rules. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees,during the preceding calendar year.
Because an employer generally will not know an employee’s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor, the rate-of-pay safe harbor and the federal poverty line (FPL) safe harbor
Mental Health Minute (July)
Many people experience better mental health and mood during the summer due to longer days and sunlight. Yet the season is stressful for others; summertime stressors and extreme weather conditions may even worsen symptoms of seasonal affective disorder.
Legal Update: 5th Circuit Requires Health Plans To Continue Providing Free Preventive Care
On June 21, 2024, the 5th U.S. Circuit Court of Appeals ruled that a key component of the Affordable Care Act’s (ACA) preventive care mandate is unconstitutional. However, in a decision it referred to as a “mixed bag,” the 5th Circuit limited its ruling to the plaintiffs in the case, a small group of individuals and businesses from Texas. This means that, for now, health plans and health insurance issuers must continue to provide first-dollar coverage for the full range of recommended preventive health services.
UV Safety Awareness Month (July)
During the summer months, it’s time to get outside and enjoy the sunshine. But it’s important to know that too much sun can negatively impact your body. Ultraviolet (UV) rays contain harmful radiation, and too much exposure can cause serious health issues, such as premature aging and skin cancer.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
