What Are The Payroll Requirements Under The Affordable Care Act?

The Affordable Care Act places an obligation on employers to provide reasonable access to affordable health care for most full-time employees, primarily, but in terms of payroll reporting requirements, it also requires employers to report the nature and type of coverage provided by them or obtained by each employee.

This is because the IRS wants to make sure that all employees have received or had pre-existing access to reasonable medical care. You can also rely on CXC Solutions to get ACA compliance services.

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A certain threshold of income paid to the employee and for a certain size of company, you are supposed to report withholding a small percentage of salary for employee tax obligations. The penalty for failing to provide this reasonable minimum access to health care by employers with more than a certain number of employees is a shared responsibility payment to the IRS.

Problems for employers

Because this is a new requirement and a recent change that is applied judicially, there is still much confusion about the mechanisms behind these new payroll reporting requirements.

However, for most employers, regardless of size, reporting obligations remain and will be enforced. Because this is a controversial policy, authorities like the IRS are likely eager to ensure compliance and are very proactive in enforcing it.

Stay up-to-date on ACA reporting requirements

Basic human resource training programs for payroll may not be suitable for accountants and other professionals to learn these new requirements, especially since there is not yet extensive industry experience to rely on.

Experts with years of experience dealing with the IRS and related compliance, plus relevant payroll skills, are the best option for businesses looking to avoid IRS headaches in light of these new ones. requirements under the ACA.