Businesses of all sizes must understand employee benefits compliance to avoid penalties and fines. Companies that fail to remain compliant with state and federal laws could also experience adverse tax consequences, civil or criminal charges.
If your organization offers benefits, it is vital to follow current rules and regulations regarding employee perks.
Affordable Care Act
Large companies must provide minimum essential coverage to their full-time staff under the Affordable Care Act. It must be affordable and comply with the employer shared responsibility provisions. If a business does not offer minimum value coverages, the IRS may require the employer to pay a fee.
These requirements apply to companies that employ 50 or more full-time workers in a calendar year. Many employers fall below the threshold number of employees and do not need to follow these mandates.
Health Plan Reporting
Health insurance providers and sponsors must also send reports to the IRS and employees regarding benefits coverage. The law requires they report events like changes in health insurance enrollment.
Employee Benefits Compliance
Government mandates change and may be confusing. Enlist the help of a professional benefit solutions provider to assist you with compliance guidelines. This option helps you plan and optimize your company’s benefits plan while avoiding potential legal issues.
There are various laws and rules to govern the extras you offer to your staff. You must know the current guidelines to ensure you meet the minimum requirements for your business.