Step 1 of 11 9% Name(Required) First Last Email(Required) Name of employer being assessed(Required) By submitting this form, I consent to being contacted regardless of my status on any Do-Not-Call or Do-Not-Email lists. I also acknowledge that this tool and any results are informational only and not tax or legal advice. How many employees does the employer have? 0 - 50 51 - 249 250+ How are employees measured under the ACA? Look back measurement period Monthly measurement period No measurement is required Unsure Are employees’ hours assessed to determine eligibility under the ACA? Yes No Unsure Does the employer offer health coverage that is both affordable and minimum essential coverage under the ACA requirements to at least 95% of full-time equivalent employees? Yes No Is the health plan self-funded, level-funded, or fully insured? Self Funded Level Funded Fully Insured Does the lowest health plan offered qualify for an affordability safe harbor? Yes No Unsure Is the employer electronically transmitting Forms 1095-C to the IRS? Yes No Has the employer received a penalty assessment letter in the past? Yes No Does the employer use a vendor for their ACA compliance? Yes No How much of your team’s time is invested in managing your ACA reporting compliance? We don’t track that information, but it eats up a lot of time. Technology has helped, but we still do a lot of manual work. We do minimal work and outsource most of the heavy lifting. We do no work; our vendor handles everything. {quiz_grade} American Fidelity Administrative Services, LLC does not provide tax or legal advice. While we’re happy to provide you with this general information, given the complexity of these rules, we encourage you to contact your tax or legal counsel about how the requirements apply to your specific plans. The answers to the quiz indicated some areas of risk for the organization. The bullets below should be considered as you are developing a plan to mitigate your risk for potential ACA penalties. Our quiz gauges the possibility of risk at a high level and is intended to highlight areas that may need your attention. This quiz cannot guarantee you will or will not receive an ACA penalty. For additional resources please visit ACAChamp.com/contact-us/. - If you have fewer than 50 employees but are a member of a group with a certain level of common or related ownership with 50 or more full-time employees, including full-time equivalent employees, you are subject to the rules for large employers. Failure to comply with the large employer requirements may result in a penalty.- Employers with 50 or more full-time employees, including full-time equivalent employees, are subject to the rules for large employers under the ACA. - Employers with less than 250 employees should expect changes to their IRS reporting starting 2024. New requirements to electronically file Forms 1095-C might present challenges to both large and small employers alike.- Employers using the lookback method should be aware of their measurement period, administrative period, and stability period dates.- Lack of understanding of the ACA measurement, administrative and stability period dates can lead to compliance errors, inconsistent coverage, difficulties in calculating affordability, and increase administrative burden.- Monthly measurement tracking of hours can increase the risk of non-compliance with ACA regulations. Mistakes in calculating hours can expose employers to penalties.- Accurate tracking and measurement of employee hours are crucial for determining full time status under the ACA. Failure to maintain appropriate records or inaccurately calculating hours could result in incorrect ACA reporting and penalties.- All employers should have a plan on when and how to assess their employee’s hours for ACA eligibility to mitigate their penalty risk. It’s a best practice to make note of this in a written policy or procedure so it is easily referenced and implemented.- Applicable large employers (ALEs) should be aware of annual adjustments in the premium affordability threshold, as these changes will affect how much they can charge employees for health coverage and still avoid an employer shared responsibility penalty.- Failure to offer both affordable and adequate coverage to at least 95% of full-time equivalent employees may result in a penalty under the ACA.- ALEs with a self-insured medical plan (including a “level funded” plan) must complete Part III of the Form 1095-C to report the months of coverage for the employee and any covered dependents.- If the employer is in a state with an individual mandate, the deadlines to furnish the 1095-C may differ.- Employers may use an affordability safe harbor to determine annual affordability. For 2023, the premium affordability threshold fell to 9.12% of household income.- If no affordability safe harbor is applicable, the risk for an IRS penalty is increased for the employer.- Starting 2024, employers with 10 or more forms can no longer file forms on paper and must file their Forms 1094-C and 1095-C electronically.- Failure to electronically transmit Forms 1094-C and 1095-C may result in a penalty.- If a ESRP has been received in the past, it is a best practice to review current plan affordability and ACA process to ensure employer is mitigating its risk.- Good faith effort has been revoked increasing the chances of penalty risk due to incorrect filing. Employers should feel confident they are providing accurate information regarding their employees to the IRS.- The employer may lack the needed level of expertise to comply under the ACA requirements. It is crucial the person in charge of the ACA understands the intricacies of ACA requirements, generating and coding Forms 1095-C, and electronically transmitting to the IRS to reduce the likelihood of penalty under the ACA.- The employer may lack the needed level of expertise to comply under the ACA requirements. It is crucial the person in charge of the ACA understands the intricacies of ACA requirements, generating and coding Forms 1095-C, and electronically transmitting to the IRS to reduce the likelihood of penalty under the ACA.
