5 ACA Compliance Worries for Small Businesses
The Affordable Care Act is a game changer for both individuals and employers. If you own a small business and worry that you are spending too much time and worry on complying with the act, you are not alone. The administrative duties around these employee benefits are substantial, and the list of restrictions is daunting for many human resource professionals. Here are some of the chief concerns about compliance for businesses with fewer than 50 full time-equilivant (FTE) employees.
Benefits Plan Structure
The plan structure requirements are changing all the time, and every employer who offers benefits must ensure they meet these standards. The hurdles get more daunting when it comes to meeting additional plan structure restrictions that depend on what type of medical benefits are offered. Some group plans, for example, must cover preventive care without a lifetime cap on basic health benefits or cost sharing.
Exchange Notice Wrangling
If a company is covered by the Fair Labor Standards Act, it must notify employees of the opportunities around ACA health insurance marketplaces. The standards for how notifications are handled can be very specific and difficult to navigate.
Minimum Essential Coverage
The Affordable Care Act requires that every company, even those with just a handful of employees, must help workers find qualified health insurance. Even if the employer doesn’t offer this benefit, the company might help workers pay for insurance through an exchange. Every person must have minimum essential coverage, and it must be established in a compliant manner.
Calculating FTE Workers
Because ACA compliance requirements get infinitely more complicated for companies with more than 50 FTE workers, employers are trying to remain below that threshold. That means they are reconfiguring the way they evaluate who is a full-time worker and who is not. Once they have 51 FTE workers, they are subject to the Employer Shared Responsibility provision and must meet health care reporting rules, which means more work time spent on ACA compliance instead of other workplace tasks.
It is up to employers to ensure that ACA eligibility and enrollment requirements are followed. Some of these rules dictate that enrollment cannot take more than 90 days and that workers must be notified throughout the year about health plan changes.
If you are looking for help with Affordable Care Act compliance or simply want someone else to jump the hurdles, we can help. Contact us today for more information about what we can do for your business.