The Importance of Affordable Care Act Compliance

Do you know that as an employer you should review the affordable care act compliance Employee Handbook? You have to understand that the Affordable Care Act has to reflect the records in your employees’ handbooks.

ACA compliance dynamics are extremely involving but they are worth your time. It is a simple act that can save you a lot of time as well as help you to avoid potential penalties. Here are reasons why you should undertake this task as you avoid these avoidable inconveniences.

Offer of coverage documentation

A handbook is a super aid when it comes to documenting offer of coverage. If you have more than fifty full-time or an equivalent categorization then the Affordable Care Act demands that all your employees working for over 30 hours weekly should attract a minimum value coverage that is affordable. Failure to comply with this directive will result in a hefty annual penalty per employee. You are advised to deliver relevant documentation to the IRS. One of the best ways to do so is through a standard platinum offer. This gives a vivid description of the enrollment requirements and offer details. It also contains employee waiver after they decline the offer. However, in case you are not in a position to give a waiver to all employees then you should provide substantial evidence that they had access to all relevant information concerning medical covers. It is recommended that you have a well distributed handbook containing these facts.

Handbook updates to comply with the ACA

If your “IS” does not have irregularities when compared to the Affordable Care Act then you should peruse through the handbooks. They can fail to reflect this compliance hence necessitating an update. Your efforts to set in place right policies and plans have to be reflected in the communications as well as handbooks. It is a reliable guard against eligibility questions and confusion. Ultimately, DOL or IRS audit confusion is avoided.

Remedy decision for ACA errors

There are situations whereby you are not in a position to set your affordable care act compliance record straight. It is always not a cup of your favorite juice to put these records in order. There are circumstances where you misunderstand the set guidelines hence making compliance an uphill task. You can also be a victim of mis-advise from certain quotas. It is wise for you to avoid living in denial as you hope for a possible repeal.

Some of the most common issues that lead to irregularities include:

Waiting periods that are prohibited-It is worth noting that the Affordable Care Act prohibits more than ninety days waiting time before commencement of major medical coverage. You should provide an employee with an open opportunity to start coverage within this time period. It is good to know that three months duration is not acceptable because it is more than 90 days.

Exclusion-You might be tempted to co-ops, interns, casual employees as well as temps among other similar groups. The act does not give room for categorical exclusion. Anyone who works for 30 paid hours and more weekly is supposed to be covered. Only work study students and religious volunteers under poverty oath can be excluded among other narrow exceptions. Please be keen to avoid penalization.

Auditing requirements

DOL or IRS auditors will request the handbook when carrying out their mandate. This is a recent document demands by the audit bodies. Avoid handing in a handbook that is employee affordable care act compliance non-compliant.

Do you or someone you know have questions about your business compliance requirements?
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