EPIC Retirement Plan Services
Loren D. Stark Company
Randall & Hurley, Inc.
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|ACA Reporting Requirements for Carriers and Employers (Part 20 of 24): Reporting Affordability on Form 1095-C, Part II, Line 16|
Dec. 3, 2015
"The attractiveness of this safe harbor is that the amount at which an employee's contribution is affordable may be known up front. The challenges, however, are many. In the case of hourly employees, the hourly rate is multiplied by 130 hours, despite that the employee may work more hours. Also, the rate of pay for an hourly employee can change if the rate of pay decreases (but not where it increases). Worse, the rate of pay safe harbor is unavailable in the case of non-hourly employees whose monthly salary is reduced mid-year. Thus, the safe harbor cannot be used, as a practical matter, for tipped employees or for employees who are compensated solely on the basis of commissions. For these employees, the employer must use one of the two other affordability safe harbors."
|Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).|
|An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).|