With the ever-changing healthcare landscape, employers have had to take on a greater role when it comes to Patient Protection and Affordable Care Act (PPACA) compliance. Various government departments including the Department of Labor, Health and Human Services, and the Internal Revenue Service are actively tracking small and mid-sized businesses for numerous compliance issues. These include PPACA reporting, wage and hour miscalculations, and more. Human Resource (HR) managers have a full-time job on their hands ensuring their company is PPACA compliant.
Many employers are familiar with PPACA’s requirements, but they do not understand their function. For employers, these requirements are boxes that need checking. What concerns business owners more is finding good health insurance that does not break the bank. They also want their plan to be PPACA compliant to avoid fines for implementing their health care offerings incorrectly. Meanwhile, employees need insurance to avoid penalties come tax season as well as for their own health.
These fines and penalties are a serious matter, especially since the IRS increased them in 2016. The increase for employees is:
- $695 or 2.5% of income per uninsured adult, whichever is more
While the increases for employers include:
- $2160 per employee if the employer fails to provide insurance or provides a non-compliant plan
- $3240 per staff member using a subsidy through the marketplace
- $1100 per day if the employer is late filing tax forms and documents
Now more than ever, employers need knowledgeable counsel to ensure PPACA compliance. Otherwise, they could be facing thousands of dollars in fees. To learn more about PPACA compliance, contact the experts at Chelten Consulting.