In the News: Two ACA rule changes that you need to know about - Abel HR

W2 Issues/Concerns

  • This field is for validation purposes and should be left unchanged.


Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

In the News: Two ACA rule changes that you need to know about

It’s been a while since we last provided an update on Obamacare rules, but two changes – while fairly minor in nature – recently popped up that merit a quick review by HR reps who need to be in the know.


The two minor changes under the Affordable Care Act (ACA) are:

Inflation adjustments for the affordability safe harbor percentages: Under the ACA, the threshold for determining whether a health plan is “affordable” to an employee is 9.5 percent of household income. However, for 2016, this threshold has been adjusted for inflation and becomes 9.66 percent. Not a huge jump, but one that could easily catch you out if you have employees who have previously been on the threshold.

Penalty increases: Blame inflation again for the following change to ACA noncompliance penalties. Initially, applicable large employers that don’t offer coverage to at least 95 percent of their full-time employees would be subject to a $2,000 per-employee penalty (minus the first 80 employees in 2015 and the first 30 employees thereafter). In addition, employers that offer unaffordable coverage were subject to a $3,000 per-employee penalty for each worker who obtained coverage on an exchange. According to IRS Notice 2015-87, that penalty has now increased to $2,080 for the 2015 plan year and $2,160 in 2016. In addition, the $3,000 per employee penalty was bumped to $3,120 for 2015 plan year and $3,240 for 2016.


Featured BLOGS

  • How To Reconnect Remote Employees

    What was once meant to be a 14-day break to “flatten the curve” quickly turned into a nearly one-year departure from life as we know it. While it seems daunting to go back, a theme of a recent survey suggested that what workers miss the most (besides the free office supplies!) was the connection with others. In the study by Office Depot, a whopping 56 percent of workers reported that they were excited to come back. Upon their return to work, 55 percent reported that they were excited to see their coworkers, 42 percent wanted their own personal space, 37

  • Why Having Time-Clock Software Is a Must

    When we look at old movies where employees are knocking off work, we often see them punch a time clock – an antiquated piece of technology that many have assumed had gone the way of the dodo. However, reports suggest some 78 million workers still punch in and out of work each day, representing just shy of 60 percent of the nation’s hourly workers. But surely there’s a better way? Enter time management software, which does away with the actual punch clock, the “sign in/sign out” paper, or takes the place of that complicated shift spreadsheet you’ve struggled with all