ACA Related Challenges for Large Corporations

ACA Related Challenges for Large Corporations

Large employers who have long offered compensation packages to their employees that include comprehensive medical programs may be in for a surprise this year. Employers are now responsible for reporting to the IRS certain factors about the insurance programs they offer. These new regulated reports will demand a whole new approach to tax reporting.


ACA History


Most large employers, as a means of attracting and retaining valued employees, have been offering medical insurance within their compensation package for decades. Until this year, there was no need to report this benefit to the IRS. The Affordable Care Act (ACA) has changed that. Employers are now required to provide proof of offering a minimal insurance package to each employee.


Large employers (those employers who employ 100 or more employees) are now required to demonstrate that they have offered a minimal insurance package to each employee. These insurance packages must be compliant with the legislation.

To document compliance, employers must provide form 1095-c to each of their employees. The employer must also transmit a 1094-c form to the IRS, which means more reporting at the end of the year, crowding an already form inundated end-cycle.

Both the 1095-c form and the 1094-c transmittal must include such information as EIN’s, or TIN’s, employee addresses, employee work status throughout the year, valid proof of the minimal insurance coverage offered (accepted or declined), coverage dates for the insurance, and the employees’ share of premium costs.



The new ACA-driven reporting system is relegated to a “test” status for the 2015 season. If employers report in good faith, they will not be penalized. It is not only a test for the employers, but also for the employees and the IRS. This new structure will take time to perfect.


Determining Who Will Make the Report

The number one responsibility of the employer is to ensure that their employees are compliant. This will require the establishment of a line of responsibility within the organization. The complex information needed on the 1095s does not typically reside in one department. Programs may be generated that cross department lines. Communication factors may change at each department level.

It becomes evident that a new department with a broad range of expertise must be created to satisfy the needs of the law.

Determining Corporate Strategy

The required information, so often jealously held behind departmental lines, requires that each employer establishes security measures that involve the whole business structure rather than department by department. Most business structures today have a basic firewall in place with more firewall structures within each department. Since the ACA requirements will force the construction of a new department to house and distribute information in the required form and time frame, new and more stringent security measures naturally follow.

The selection of the first team is critical. Expertise in several areas and access to those areas is imperative. Transitioning from a relatively benign compensation package program to one that will become dynamic is difficult. The probability of changes to the ACA from year-to-year is high. The new department and its employees will be dancing to a quick beat every year. Therefore, the necessity of an intelligent and cogent staff is paramount.


ACA Employer responsibilities

The Added Responsibility of Employers to Employees

One of the employer responsibilties to employees is the ability to move from employer to employer without loss of medical insurance. The issue of pre-existing conditions no longer applies as the ACA has wiped that particular matter from the employer playing field. Thanks to the law, a new dynamic now exists in employer/employee relationships.

According to the ACA, the employer is not only responsible for offering, at least, the minimal medical insurance coverage required by ACA standards, they also must inform employees of the consequences of declining the offer. It is not enough to only keep the records and divvy out the information to employees and the IRS at the end of the year. The large employer must also affirm that the employee knows what to do with the information.


ACA Tax Information

ACA changes create a new level of frustration for employers as the responsibility for the tax structure of employees becomes an issue. Not educating employees on requirements can result in fines for employees from the IRS, which, in turn, may bring about a collection process that creates further bureaucratic burdens on corporate structure. Pleading ignorance, whether as an employer or an employee is no excuse.

It follows, then, that the education of employees on ACA reporting rises in the level of importance. Education on employer time is expensive, but not as expensive as the frustration of employees who have no idea what ACA parameters mean to them.

Education is another duty that must fall on the new department. Only those with the collective expertise can elaborate on the complexities and simple points of the actions required.


This content was provided by Neches FCU, an Equal Employment Opportunity Employer Credit Union.
Neches FCU is a leading Texas credit union with a superior team, always ready to deliver service their 45,000+ members.
Their company’s core objective of “Ultimate Member Satisfaction” is the sole focus for every employee.
They are all dedicated to providing a memorable service experience each and every time for clients they consider as family.

Mentors Are the Backbone of Your Business

Mentors Are the Backbone of Your Business


If you are like most people, you crave the ability to work for yourself. However, you do not know where to start to launch your business. The idea that many businesses fail in the first few years may have you a little hesitant to risk your money in support of your business idea. If you are an aspiring entrepreneur, there is a way you can mitigate risks and successfully launch your business. You can get a mentor.

All entrepreneurs should seek out mentors. In fact, you can have multiple mentors. You can have a mentor that provides you advice directly or one that you watch from afar. Armed with a mentor, you improve the chances that your business will survive your ever-changing industry.

Even if you have launched your business, finding a mentor will help you move from phase-to-phase with fewer costly mistakes. They can help you make strategic business decisions because they have industry experience, and that is priceless.

Below, you will find a few reasons why aligning with a mentor is in your best interest both personally and professionally.

Learn from Your Mentor’s Mistakes

Learning from Mistakes

Like most entrepreneurs, your business operates on a budget. Making a mistake can cost you time, but most importantly, it can cost you money. When you align with a mentor, they are like your copilot. They help you navigate through the business landscape. Their experience and insights help them to see potential costly pitfalls before you are able to assess risks.

Effectively, your mentor can help you save money.

With a keen eye for industry trends and obstacles, you and your mentor can escape stormy waters such as hiring the wrong employee, investing in the wrong technology, or partnering with the wrong company.

Expand Your Network Opportunities

Expand Your Network

Networking is critical when it comes to launching your business. The right person or business partnership can take your business to the next level. Fortunately, your mentor has years of networking experience, along with a host of established connections. Good mentors will take their time and introduce you to movers and shakers within the industry. They know that access to like-minded individuals will help you establish an unshakable foundation for your business.

Another benefit to having access to your mentor’s connections is the fact that they’ve already weeded out nonessential people. If your mentor puts you in contact with an individual, they’ve already proved to your mentor that they are credible and resourceful. By eliminating individuals who can’t be trusted, your mentor has effectively insulated your business from some risks.

Mentors Have Industry Skills

Industry Skills

Launching a business requires a lot of industry knowledge and skills. Whether you are starting a consulting business or you are launching a product, you must possess industry skill in order to compete with business owners who are already in operation. If you don’t have industry skills, choose a mentor who has the skills you need. By choosing a mentor with the skills you desire, each day you work with your mentor will be equivalent to getting on-the-job training for free.

Get Guidance about Business

Get Guidance

Carving out a competitive advantage will help your business excel. Your mentor’s guidance about the industry can potentially help you create a competitive advantage. Their insight on best practices and efficient business processes can help enhance your business’ efficiency, allowing you to capitalize on areas your competition fails.

Mentors Provide Positive Support

If no one in your circle of friends and family members has ever launched a business, then you are on your own. Even if someone has launched a business, if it’s not similar in nature, you are on your own. Day-to-day problems that you face, you have to do it without having the ability to vent. With a mentor at your side, you avoid these problems. Although they’ve never faced your exact problem, they may have overcome similar problems successfully. With the support of a mentor, you don’t have to worry about wasting time strategizing. You can deploy a solution your mentor has successfully used in the past.

Allow Your Mentor to Provide You with Direction

A Mentors Direction

Like you, most entrepreneurs do not know how to launch and operate their business. Concerned by all the paperwork, they become stagnant in their mission to run their business. Mentors are capable of helping you overcome your fears, paranoia, and other business-paralyzing issues. By creating actionable plans, mentors can effectively help you continue to move forward.

Mentors offer a unique perspective because they are external to your business environment. They can see the whole picture, which helps them see potential risks. As a business owner, you are emotionally and financially tied to your business. Mentors are free help, guidance, and support. By aligning with a mentor, you increase the chances of your business being a success.


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