JetPay Payroll Services announces a solution for clients considered applicable large employers. This robust cloud based solution will facilitate Affordable Care Act (ACA) compliance, simplify paperwork and help employers avoid costly penalties. Payroll data is delivered real-time so the actionable information employers need is always available. The ACA dashboard management tool provides continual ACA monitoring, reporting, and documentation.
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JetPay is partnering with SyncStream Solutions, LLC to provide this ACA solution. SyncStream is the market leader in the development of Affordable Care Act (ACA) solutions for professionals and employers. SyncStream works with premier partners such as the National Association of Health Underwriters and Thomson Reuters in delivering its solutions to employers and advisors across the country.
The Affordable Care Act (ACA) contains Employer Shared Responsibility provisions for applicable large employers (ALEs) who have 50 or more full time or full time equivalent employees. An employee is considered full time if the employee has at least 30 hours of service per week, including vacation, holiday, sick pay, etc. Full time equivalent employees are determined by the total service hours of part time employees in the month divided by 120. The ALE is required to offer employer sponsored health insurance to their full time employees (and their dependents) or face potential penalties.
The Employer Shared Responsibility provisions apply to ALEs beginning in 2015. There are two types of penalties, an ‘A’ penalty for not offering employer sponsored health insurance and a ‘B’ penalty if the employer sponsored plan is not affordable or does not offer minimum value. The ‘A’ penalty kicks in if the employer does not offer health insurance to 70% of full time employees (and their dependents) for 2015 and 95% in subsequent years, if at least one full time employee receives a premium tax credit when acquiring health insurance from a public exchange.
The second penalty, or ‘B’ penalty, applies if the employer sponsored health insurance is not affordable or does not provide minimum value of coverage and one or more full time employees receives a premium tax credit when acquiring health insurance from a public exchange.
The final rules delayed the Employer Shared Responsibility assessable payments for employers who have 50 to 99 full time employees (including full time equivalents) in 2014, for one year. However, these employers are still subject to reporting requirements for 2015 certifying that they meet certain requirements.
Annual reporting is required to the IRS and to all full time employees. The first reporting will be required by January 31, 2016 for the year of 2015. A new IRS Form 1095-C (employee statement) and a Form 1094-C (transmittal) are the designated forms to be used. The ACA Dashboard will generate the employee statements and file the required annual reports Form 1094-C and Form 1095-C to the IRS.