While summer is a time of vacations and taking a “breather” from the more compliance-heavy times of the year, it isn’t time for you to take a break. In fact, taking a break during the summer months can easily cause issues for your business.
Now we know what you’re thinking: If the 2015 tax year is over, why are we still talking about compliance well into the summer? The answer is simple: Because there is no break when you must track and centrally store ample amounts of employee data for the upcoming tax year. It’s this kind of proactive, hands-on approach that keeps your business compliant (along with the support of a human resources software system like Flock, of course).
So one major question remains: What are you supposed to be focusing on this summer? Below, we detail the major matters you’ll want to pay attention to.
Preparing for 2016 Now is Important With Major Changes Ahead
The Affordable Care Act (ACA) underwent some rapid, frequent changes in 2015. It was these changes that made it difficult for many business owners to not only remain compliant, but to offer affordable coverage to employees. Likewise, the challenge is set to continue well into 2016 with reporting requirements, general requirements, and more.
Here are some of the most notable changes to come in 2016:
Coverage Requirements - In 2016, employers will be required to offer coverage to at least 95 percent of full-time employees (in contrast to the 70 percent requirement in 2015).
Reporting Requirements - Employers in 2016 will be required to fill out Form 1095-C or Form 1095-B, even for inactive employees or those receiving insurance on a self-insured plan. All forms also have their own sets of requirements, making the process even more complicated.
Exchange Notices - You receive Marketplace or Exchange Notices each time an employee applies for health coverage from an ACA plan. These Exchange Notices are set to increase and employers face fines if you do not keep your employees on top of these notices.
2016 Tax Season is Coming, and You Need to be Prepared
Being prepared for the 2016 ACA reporting season may sound intimidating and confusing, much like previous years have been. However, there are new tools always emerging to help you manage these issues, many of which are technology-related.
For example, Flock is an HR platform that allows you to centrally store employee data and monitor/maintain compliance with both federal and state regulations. This ensures you don’t have to waste additional time or resources to do so and can allow a system to do it for you.
How You Handle the 2016 ACA Tax Year Will Directly Impact Your Business
With increasing complexities and more changes than ever before, as well as uncertainty pending the 2016 presidential election, it’s important that you take steps now to reduce headaches later that may arise with the ACA. By signing up for a free platform like Flock, you can take proactive steps that streamlines compliance and more!
Have you spent part of this summer tackling administrative issues for next year. If not, what’s holding you back? Share your thoughts in the comments below!