The Essentials of Employee Benefits Compliance

employee benefits compliance

Employee benefits compliance is a significant concern for many companies. There is inherent stress when creating an employee benefit plan to be fully compliant with all employee benefits laws, such as COBRA and HIPPA. If companies aren’t compliant, they can find themselves on the wrong end of fines, penalties, loss of tax-favorable status, or even criminal or civil charges.

Federal and state laws impose several requirements on the benefits coverage that employers provide to their employees, especially with health coverage. These rules can change throughout the year and focus on businesses of all sizes and in all industries.

If your company offers employee benefits plans, it’s essential to remain compliant by following this checklist.

Affordable Care Act

This year, large companies have had to meet specific requirements to be part of the Affordable Care Act. To comply with the “Play or Pay” mandate, any large employer that does not offer minimum essential insurance that meets the minimum value requirements for full-time, permanent employees and dependent children may face penalties if they receive a subsidy for health coverage through a health marketplace.

Large employers employ more than 50 full-time employees, or someone who averages at least 30 hours of work per week. Employers are responsible for keeping track of their employees’ hours to determine if they meet full-time status.

Government Mandates & Open Enrollment

Some government mandates have changed for the new plan year. Open enrollment for individual market ACA policies started this past November 1st and conclude on December 15th, with some periods shorter among certain large employers.

Employer-based health insurance benefit costs are expected to grow this year by at least 3.9 percent. Price increases will make more of an impact on private individuals, large group plans, and small businesses. While short-term, limited policies will still be available at a much lower cost, they don’t provide more comprehensive coverage than compliant systems. Companies need to keep this in mind when updating their employee benefits packages.

The best way to eschew legal issues when it comes to compliance is by working with an Orlando Employee Benefit Solutions provider, such as Hilb Group. This option helps protect employers with benefits package implementation, ensuring they fall in line with all compliance guidelines. Having this coverage and assistance protects you from the potential penalties and risks related to not being compliant.

Health Plan Reporting

There have also been recent changes related to the annual reporting of health plan coverage information. All health insurance issuers and sponsors that provide self-insured benefits plans with minimum essential coverage must report specific health insurance enrollment changes and other information. Businesses need to include these details on completed 1095-C and 1095-B forms with the IRS.

Furthermore, large employers are required to report any offers of health insurance to full-time employees and their dependents and other healthcare information on 1095-C. This form consists of employer data and should be sent to individuals by the first of the year.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.