The new tax law repeals ACA's Individual Mandate. Here's what it means for employers.

On Wednesday, Congress passed the Tax Cuts and Jobs Act, which effectively eliminates the Affordable Care Act’s Individual Mandate. However, this sweeping tax reform did not make any changes to the so-called Employer Mandate. Employers must still comply with reporting obligations under ACA, as well as continuing to offer affordable health insurance coverage, as outlined below.

Employer Responsibilities Remain the Same

The Employer Mandate, which requires Applicable Large Employers with 50 or more full-time equivalent employees (FTEs) to offer affordable health insurance to full-time employees, is still in effect. Also, Employer Mandate reporting requirements remain in place, including the filing of IRS Forms 1094-1095.

As a reminder, self-insured employers of any size, as well as all employers with 50 or more FTEs, have to report offers of coverage to the IRS in early 2018 by filing Forms 1094-1095.

Could Employer Requirements Change in the Future?

Beginning in 2019, the ACA's Individual Mandate will effectively be repealed, and the requirement that individuals maintain health insurance coverage will no longer carry a penalty.

Some experts have predicted that employer requirements, such as the PCORI fee or even the Employer Mandate itself, could change in the future as a result. However, at present, employers should continue complying with the ACA Employer Mandate.

Contact us

Again, no changes were made to the ACA Employer Mandate, and the law requires offers of coverage and corresponding reporting requirements.

If you have questions or need help complying with ACA, please contact a Plexus client service team member in Deer Park, Ill. (847.307.6100), Chicago (312.606.4800), Dallas (972.770.5010), or Oklahoma City (405.840.3033). We're here to help, and we're happy to help.