Compliance September 23, 2015

IRS Publishes ACA Resource for Employers

The resource is for companies that fit the definition of “applicable large employer.­”
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A new Internal Revenue Service (IRS) resource helps employers understand the Patient Protection and Affordable Care Act (ACA).

The new ACA Information Center for Applicable Large Employers page features information and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer (ALE).

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The web page includes the following sections:

  • What’s Trending for ALEs;
  • How to Determine if You are an ALE;
  • Resources for Applicable Large Employers; and
  • Outreach Materials.

Visitors to the new page will find links to detailed information about tax provisions including information reporting requirements for employers; questions and answers; and forms, instructions, publications, health care tax tips, flyers and videos.

The IRS notes that an employer is an ALE for 2015 if it averaged at least 50 full-time employees, including full-time equivalent employees, during 2014. Employers with fewer than 50 full-time employees may be considered an applicable large employer if they share a common ownership with other employers. As ALEs, employers should be taking steps now to prepare for the coming filing season.

In 2016, applicable large employers must file an annual information return—and provide a statement to each full-time employee—reporting whether they offered health insurance, and if so, what insurance they offered their employees.

In addition, if an employer will file 250 or more information returns for 2015, it must file the returns electronically through the ACA Information Reports system.

Data and Research September 23, 2015

30 Million Recently Tapped Retirement Savings for Emergency

Another 21 million Americans aren’t saving for retirement.
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Thirty million Americans used money from their retirement savings to account for an emergency in the past year, according to Bankrate.com. In addition, 21 million Americans aren’t saving for retirement at all.

Bucking the perception that lower-balance accounts are more likely to see early withdrawals, Millennials were the least likely to tap into their retirement accounts, with only 8% of this demographic group having done so in the past year. Helping to explain the trend, 40% of Millennials say their financial situation has improved in the past year, and only 11% say they are doing worse right now than they were 12 months ago.

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However, for those in the 50 to 64 age group, 26% say their financial situation has deteriorated in the past year, and 18% have drawn down funds from their retirement account for an emergency. 

In addition, Bankrate.com reported that its Financial Security Index rebounded and now stands at 102.6, the best reading since June. Thirty percent of people feel more secure in their jobs, 57% feel the same, and 12% feel less secure. Thirty percent feel less comfortable with their savings compared to a year ago, while 18% feel more comfortable.

Bankrate.com’s report follows an earlier report that showed that only 19% of Americans are contributing more to their retirement accounts than they were a year ago, 14% are contributing less, and 55% are contributing the same amount.

Princeton Survey Research Associates conducted the survey in early September among 1,004 adults for Bankrate.com. It can be seen in its entirety here.

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