With the numerous delays that have been recently applied to the Affordable Care Act (ACA), many companies are adopting a “we’ll cross that bridge when we come to it” attitude. These employers seem to think there is no need to hurry as an employer’s mandate of ‘shared responsibility’ under the Act will not come into play until January 1, 2015. But, if they think that it means they have nothing to do until then, they better think again. Let us look at what they will need to do to stay on track.
Employers need to start tracking and recording employees’ work hours. Here are some reasons why this is an important requirement:
It is the employer’s responsibility to offer health coverage to full-time workers or to pay the penalty for failing to provide adequate coverage. Based on the payroll records, if employers find that they are classified as large employers under the ACA; they must ensure that none of their full time employees seeks a premium tax credit or purchase subsidized health coverage through a Health Insurance Exchange. Data gathered prior to January 1, 2015 will provide the information needed by employers to assess the cost-benefits associated with deciding to “pay or play”.
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