PwC and Equifax Workforce Solutions just released results from a jointly conducted survey of 480 employers in 36 different industries to better understand how employers are preparing to comply with the new ACA reporting requirements. The ACA added two significant and complex reporting requirements to the Internal Revenue Code – sections 6055 and 6056. The first reporting is due to the Internal Revenue Service in early 2016.
The survey results show that the reporting requirements are presenting numerous challenges and many employers have yet to decide how they will meet their obligations. In particular, employers are concerned with the difficulty in aggregating data that is housed in multiple systems, such as payroll, HRIS, benefits administration and leave of absence systems. Employers are also concerned about responding to exchange notices when employees purchase subsidized coverage, which may trigger a penalty under the Employer Mandate.
Of the employers surveyed, a small percentage had already implemented a solution to meet their reporting obligations either in-house or through an outsourced third-party vendor. But surprisingly, quite a few had not yet even started considering how they were going to do so.