ACA stands for the Affordable Care Act, which is a comprehensive healthcare reform law enacted in the United States in 2010. The ACA, also known as Obamacare, was implemented to increase access to affordable healthcare coverage, improve the quality of healthcare, and reduce healthcare costs.
ACA creates huge compliance problems for employers over 50 employees. The requirement of applicable large employers (ALE) is daunting and carries penalties up to $5,000 per employee per year. Critical steps include filing annually the form 1094 / 1095 with appropriate IRS tax submission on a strict timeline.
The ACA has had a significant impact on the healthcare landscape in the United States, expanding access to coverage for millions of Americans. However, it has also been a subject of political debate and has faced various changes and legal challenges since its implementation.
Why is it important to consult with tax professional such as ESG regarding ACA laws is important for several reasons:
Given the evolving nature of ACA regulations and the potential consequences of non-compliance, consulting a tax professional with expertise in ACA laws can help employers navigate the complexities, reduce risks, and ensure compliance with the applicable provisions.