Eligible employers may soon face expensive penalties for Affordable Care Act (ACA) noncompliance. Research indicates ACA penalties are going to hurt during the upcoming 2016 tax reporting period. Accenture researchers revealed penalties could be attributed to employers that are “unintentionally non-compliant,” meaning they offer health coverage, but fail to meet IRS reporting requirements. Don’t get caught unaware or unprepared.
According to “Obamacare employer penalties might reach $31 billion in 2016,” posted by James M. Berklan on McKnights.com, noncompliance with ACA is about to get really expensive. The projected penalty total for 2016 could reach $31 billion, which is three times the 2015 total and about 50% greater than the estimate previously projected by the Congressional Budget Office. Employers that are ‘unintentionally noncompliant’ may contribute as much as $10 billion of those penalties by not meeting worker insurance requirements. Adding salt to the wound, penalties could be piling up for employers that are completely unaware they incurred penalties in the previous year.
While employers may hope changes from incoming President Trump will eliminate ACA obligations, the reality is these changes are not going to take place quickly. It’s also likely some level of employer reporting will continue with any type of replacement law. With reporting deadlines right around the corner for the 2016 benefit year, the IRS is likely expecting employers to file in accordance with the ACA legislation in place at this moment.
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If you have been struggling with ACA compliance, don’t waste any more time or put your business at risk for costly penalties. Integrity Data’s ACA Compliance solution is a powerful software solution that works with any ERP system or standalone payroll solution. This solution can be implemented in less than a day using a simple setup wizard and provides comprehensive ACA tracking