Affordable Care Act (ACA) – Compliance Issues for 2016

By: | Category: Compliance, Employee Experience

Employee – Subsidy Notifications

Employers may be facing a second round of concerns with respect to the Affordable Care Act (ACA) compliance.

They may have sent 1095s to employees for the 2015 tax year, but they are still facing the flood of subsidy notifications that the ACA Exchanges are expected to issue anytime now. Once these notices are sent, employers will only have 90 days to appeal the Exchange’s decision to grant the employee a subsidy.

When will notifications begin?

Beginning June 1, 2016, employers will have started receiving notifications from the Department of Health and Human Services (HHS) when an employee in their organization receives a subsidy to purchase health coverage from the Federal Exchange.

It is important to be aware that a notification from HHS that an employee is determined to be eligible for subsidized Exchange coverage is different from a notification from the IRS that an employer is liable for penalties for not offering coverage or not offering affordable, minimum value coverage to employers as part of the Employer Mandate.

What ACA Employee Subsidy notifications mean to you:

Because subsidies, also known as Advanced Premium Tax Credits, are the trigger for penalties, it’s important to respond to these notifications correctly.

Managing ACA Subsidies & Appeals:


 SHRM Warns Employers:

Look Out for ACA Employee-Subsidy Notifications – Employers have 90 days to appeal when employee claims a marketplace subsidy

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