Plexus eBook excerpt: Employers face bumpy, winding road to ACA compliance

The following is an excerpt from "Employer Reporting: The Perfect Storm," an eBook from The Plexus Groupe exploring the Affordable Care Act compliance landscape for employers as mandatory IRS reporting begins for tax year 2015 and calendar year 2016. To download the eBook, click here to be redirected to the Plexus Groupe's home page, where you can fill out our quick, simple eForm to be sent a PDF of the book. 
Employers with more than 50 full-time employees must complete IRS Forms 1094 and 1095 to document ACA compliance. And though the deadlines for compliance were recently pushed back, the reporting process could be a laborious one for companies -- especially those who go it alone, as ERISA attorney Jared Pope writes in this excerpt:

FOR BUSINESSES, this mandatory self-reporting function [under the Affordable Care Act] is an added responsibility that’s complex, dynamic, and a bureaucratic nightmare. It offers little in the way of clarity, rules, or organizational leadership. Moreover, if you report incorrectly, or “Big Brother” (i.e., IRS) determines a mistake through cross-checking, [your] business will be hit with penalties.

It’s the perfect storm for businesses in these times of transition.

To analogize the situation, think of employer reporting like this: 

There is a road out there that we all have to travel. However, we don’t know where the potholes are. We know the general things like how fast we have to drive and that we have to put gas in the tank to get us going. However, your car is still missing necessary items – windshield wipers, headlights, navigation, and windows. Do you have enough to get you there? What if it gets dark? What if starts raining? What if you make a detour – do you know how to get back on track? You see, we may have the engine, tires, frame, and gas, but we still need the other necessary support to help us find our way. In essence, you are driving blind. So how are we going to get to our destination without having an accident?

The only way to make it is to get enhanced support from an outside source. Someone who can provide night vision to see the obstacles others can’t and proper tires that can effectively absorb all the unavoidable potholes to keep you on a steady pace. These things can’t be taken for granted, because if you aren’t equipped for these challenges, you’ll have a long road ahead filled with liability and accountability issues.

The Plexus Groupe is providing filing, consulting and preparation services for IRS Forms 1094 and 1095. Contact us at 847.307.6100 (Deer Park / Chicago, Illinois), 972-770-5010 (Dallas, Texas / Oklahoma) to speak to a Plexus professional, or contact us via the Web.