Head-Count Exclusions that Can Ease Pain of ACA Compliance
Just as small and mid-sized businesses all across the U.S. are feeling the pain of figuring out what - if anything - to do for compliance with the Affordable Care Act (ACA), so too is Santa up in North Pole, Alaska.
After Mrs. Claus realized that their four U.S. companies had to combine their head counts to see if the new health care law applied to Claus Resources. And because - as a group - the total head count of these companies passed the 50 full-time employee threshold, every one of the companies has to be ACA-compliant, even when each one of them on their own does not.
Together, they are members of an Applicable Large Employer (ALE) Group.
For Tax Year 2015, the only good ACA compliance news for Claus Resources came from the head count exclusions they were able to take for three of the four companies. Those exclusions keep the group's head count at 99 - just under the 100 full-time employee threshold that faces coverage penalties for 2015.
How is that?
Businesses in the 50-99 ALE category - which Claus Resources falls into - have a grace period from penalties for offering no coverage and from offering non-compliant coverage. They won't be exposed to those penalties until January 1, 2016 - a whole year after the start of the coverage-penalty period for business with 100 and more FTEs.
So what does Claus Resources actually have to get done to be ACA-compliant for Tax Year 2015?
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