On Inauguration Day, President Trump signed an executive order concerning the Affordable Care Act (ACA) and the White House issued an immediate regulatory freeze. This has caused a lot of confusion and misinformation.
It is important to understand that the executive order doesn’t change the current state of law as it relates to the employer shared-responsibility provisions of the ACA and employer reporting. The Executive Order does not in and of itself change the legal status of the ACA. Only Congress can repeal the law. Because the order does not specify actions to be taken, it is not yet clear how the order will be implemented by federal agencies. Applicable Large Employers (ALEs) that are subject to the ACA Employer Mandate are required to furnish to their full-time employees a Form 1095-C by March 2, 2017 and to file them with the IRS by February 28 (March 31 if filed electronically).
At this point, employers should continue to consult their legal counsel on how to comply with all current ACA rules and regulations as the IRS retains its ability to penalize employers that do not accurately and timely file all ACA forms. Do you have questions on whether or not you or your clients fall into the ALE category? Still unsure about reporting requirements? Give FreedomCare a call today.