Equifax, Inc. · NYSE:EFX
Equifax — Equifax Workforce Solutions ACA Webinar (October 2023)
27 slides from Equifax's conference presentation, Oct 25, 2023
Slide 1: Preparing for the 2023 ACA Reporting Season
Preparing for the 2023 ACA Reporting Season Best Practices for Helping Reduce Stress & Better Maximize Efficiency October 25, 2023 PROPRIETARY | 1
Slide 2: Thanks for joining our webinar
Thanks for joining our webinar Welcome! Questions? Recording Thank you for joining our Please enter your questions This webinar is being webinar. Stay tuned for in the chat box on your recorded. You will receive an more from Equifax screen at any point during email with a link to view the Workforce
Slide 3: To keep our lawyers happy
To keep our lawyers happy The information provided herein is intended as general guidance and is not intended to convey specific tax or legal advice. For a legal opinion, please consult your lawyer. This presentation is intended for the education and benefit of our customers and potential customers. T
Slide 4: Your ACA Subject Matter Experts Today
Your ACA Subject Matter Experts Today Todd Hurst Elizabeth Collins AVP, ACA Business Development Solutions Engineer, ACA Equifax Workforce Solutions Equifax Workforce Solutions PROPRIETARY | 4
Slide 5: Agenda
Agenda ACA Latest News & Hot Topics Know Your State and Federal Deadlines Understanding ACA Penalties ACA Year End Reporting Readiness PROPRIETARY | 5
Slide 6: ACA Latest News & Hot Topics
ACA Latest News & Hot Topics
Slide 7: 2023 In Summary
2023 In Summary Evolving state healthcare Increased risks of federal penalties Court rulings & plan reporting requirements for employers administration complexity ● Penalty A and B amounts continuing to rise ● Texas case challenging ACA ● Changes to state vs. federal preventive care deadlines ● Stri
Slide 8: Latest SMB Employer Insights
Latest SMB Employer Insights* 55% of leaders rely on 50% have received an ACA internet searches for fine assessment information about the ACA 71% of those that have received 11% are unaware of State fines agreed with the letter and Mandates for ACA paid the fine Only 19% of those that *September 2023 Y
Slide 9: Make This Reporting Season a Success
Make This Reporting Season a Success Prepare for increasing compliance It’s not too late to get help with your challenges & penalty risks 2023 ACA reporting Ensure that your ACA solution meets your needs: ● IRS leniency is no longer available ● Are you able to meet all federal and state deadlines? ○
Slide 10: Know Your State & Federal Deadlines
Know Your State & Federal Deadlines
Slide 11: Federal vs. state deadlines
PLAN AHEAD FOR: IRS ● Federal vs. state deadlines Furnishment: ● Deadlines to distribute forms to employees Fri., March 1, 2024 ● Deadlines to file form data to each agency Filing: Mon., April 1, 2024 ● Leap year complexity REMINDER The deadline to furnish Forms 1095-B and C to individuals has been p
Slide 12: State-Level Healthcare Reporting
State-Level Healthcare Reporting CALIFORNIA MASSACHUSETTS RHODE ISLAND NEW JERSEY DISTRICT OF COLUMBIA Furnishment: Furnishment: Furnishment: Furnishment: Furnishment: Wed., January 31, 2024 Wed., January 31, 2024 TBD Fri., March 1, 2024 Fri., March 1, 2024 Filing: Filing: Filing: Filing: Filing: Fr
Slide 13: Understanding ACA Penalties
Understanding ACA Penalties
Slide 14: ACA Employer Shared Responsibility Penalties
ACA Employer Shared Responsibility Penalties Penalty A Penalty B ● §4980H(a) - a.k.a. the “sledgehammer” penalty ● §4980H(b) - a.k.a. the “tack hammer” penalty ● Assessed to employers who do not offer ● Assessed to employers who do not offer minimum essential coverage to at least 95% coverage or whose
Slide 15: Penalty A and Penalty B Increasing Risks for 2024
Penalty A and Penalty B Increasing Risks for 2024 2024 updated penalty amounts: 2024 updated affordability threshold: August 2023: Penalty A: $247.50 per month per full-time employee ($2,970 per year) 8.39% First IRS 226-J Penalty letters from the 2021 tax year Penalty B: $371.67 per month per full-t
Slide 16: Potential Penalty Calculator
Potential Penalty Calculator With increasing penalty risks and IRS scrutiny, plan ahead for your organization’s potential Penalty A and B exposure workforce.equifax.com/aca-calculator PROPRIETARY | 16
Slide 17: Penalties for Inaccurate or Late Forms
Penalties for Inaccurate or Late Forms FEDERAL PENALTIES: FEDERAL PENALTIES: STATE PENALTIES: Failure to distribute accurate forms Failure to file accurate forms to the IRS • California: $50 per covered individual to employees on time (§6722): on time (§6721): not filed on time to the state’s Franchis
Slide 18: ACA Year End Reporting Readiness
ACA Year End Reporting Readiness 5 Key Work Streams Your Team Can Plan Ahead For
Slide 19: Plan Ahead to Help Reduce Stress & Better Maximize Efficiency
Plan Ahead to Help Reduce Stress & Better Maximize Efficiency Calculating & Distributing Filing to the IRS Filing to State Correcting Validating Forms to Agencies Form Errors Forms 1094-C Employees & 1095-C PROPRIETARY | 19
Slide 20: Calculating & Validating Forms 1094-C & 1095-C
Calculating & Validating Forms 1094-C & 1095-C Be mindful of nuances Monitor benefit plan rules Address common data in affordability safe that complicate affordability inaccuracies harbor calculations determinations Source: IRS.gov PROPRIETARY | 20
Slide 21: Calculating & Validating Forms 1094-C and 1095-C
Calculating & Validating Forms 1094-C and 1095-C SOME BEST PRACTICES FOR REVIEWING YOUR DATA Watch out for data that could increase your Penalty A risks Review your 1095-C Lines 14 and 16 codes for possible Penalty B risks Check eligibility & affordability calculations for employees with complex scen
Slide 22: Distributing Forms to Employees
Distributing Forms to Employees Key considerations: • Does your ACA solution include the ability to distribute forms electronically to employees? • Have you communicated with your employees? • Do your HR administrators have access to download additional copies of 1095-C? • What is your strategy for
Slide 23: Filing to the IRS
Filing to the IRS NEW FOR THE 2023 TAX YEAR IRS filing best practices: Avoid risks of filing rejections • Electronic filing to the IRS is now mandatory for all organizations with 10 Report accurate Aggregated ALE Group details in Form or more forms to file. 1094-C Part IV • This threshold is based on th
Slide 24: Filing to State Agencies
Filing to State Agencies Key tips for self-filing or verifying the scope of your filing service provider: • Beware of different file size limits, formats, and naming conventions for each state • Plan ahead for state-specific processes ● Coordinate carefully with your health insurance carriers and benefits
Slide 25: Correcting Form Errors
Correcting Form Errors BEST PRACTICE PRIOR TO IRS FILINGS: To reduce the likelihood of needing to file corrections, employers should distribute forms to employees, allow time for questions, and then fix any inaccurate data BEFORE filing to the IRS. TIPS FOR SUBMITTING CORRECTED FILINGS TIPS FOR HANDLIN
Slide 26: Q&A
Q&A Copyright © 2023, Equifax Inc., Atlanta, Georgia. All rights reserved. Equifax ® and I-9 Anywhere ® are registered trademarks of Equifax Inc. The Work Number ® is a registered trademark of Equifax Workforce Solutions LLC, a wholly owned subsidiary of Equifax Inc.
Slide 27: Next Steps
Next Steps 1 SURVEY 2 CONTACT 3 CONNECT Complete the survey Want to talk to someone about Subscribe to Let’s Talk HR for updates: through the webinar your ACA processes? Click on the workforce.equifax.com/insights console “Want to Get In Touch” button on your webinar console or contact us at: workfo
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