Payroll 310 Badge #01 - Affordable Care Act (ACA)-Payroll 310 Badge #1

Video Transcription

Video Summary

This WASBO Payroll 310 Badge 1 session introduces the Affordable Care Act (ACA) and what payroll staff must do to support compliance. The presenter reviews ACA history (enacted in 2010, effective in 2014) and key coverage rules, including required “minimum essential benefits,” creation of insurance marketplaces (the Exchange in Washington), dependent coverage allowed to age 26, and premium tax credits for eligible individuals. It also notes the additional 0.9% Medicare withholding on wages over $200,000 for employees.<br /><br />For employers, the ACA applies most significantly to “Applicable Large Employers” (ALEs) with 50+ full-time employees (including full-time equivalents). Full-time is defined under ACA as 30+ hours per week (130/month). ALEs must offer affordable, minimum-value coverage to at least 95% of full-time employees and dependents or risk employer shared responsibility payments. Employers cannot reduce hours solely to avoid offering coverage.<br /><br />The training explains reporting requirements and forms: possible W-2 reporting of employer-sponsored health coverage (Box 12 code DD, with guidance differences on whether employee premiums are shown in Box 14), and ACA filings using Forms 1095-C/1094-C (for ALEs) and 1095-B (often for smaller or self-insured reporting). It walks through common 1095-C codes (e.g., 1A, 1G, 1H; 2A, 2B, 2C), self-insured dependent reporting, electronic filing via the IRS AIR system, and correction processes.<br /><br />Finally, it summarizes penalties for failing to offer coverage or failing to file accurate, timely returns, and provides IRS and reference resources plus course completion requirements.

Keywords

Affordable Care Act (ACA) compliance

Payroll reporting requirements

Applicable Large Employer (ALE) 50+ employees

Full-time employee definition 30 hours per week

Employer shared responsibility payments (ESRP) penalties

Affordable minimum-value health coverage 95% rule

ACA Forms 1095-C and 1094-C

ACA Form 1095-B self-insured reporting

W-2 Box 12 code DD health coverage reporting

IRS AIR electronic filing and corrections