It’s critical for employers to review and understand the 2019 increases and associated penalties with the ACA’s annual inflation adjustment. The Affordable Care Act’s federal poverty level (FPL) threshold has risen in from 9.56% in 2018 to 9.86%. While evaluating new benefits plans, there are several components to consider.
To assist employers in navigating which threshold applies, the ACA has created three safe harbors. Using the Federal Poverty Level safe harbor guides employers through the process of determining employee contributions for self-only coverage to help avoid penalties. If there is a failure to offer affordable, minimum coverage, these penalties are estimated to be $3,750 per employee, up from $3,480 in 2018.
Alongside the penalties criterium, there are other cost-sharing limits that employers must remain mindful about. From last year to 2019, the forms haven’t changed with any significance from the previous year. No matter how great or small, it should be a standard practice to review and ensure compliance and verify deadlines.
It is always best to review updates and requirements with your local payroll services provider or HR company to ensure you understand deadlines, penalties, shared costs and the necessary forms to be submitted. If you have questions, reach out for a Payroll Check Up to confirm that your payroll is healthy.