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Supreme Court Rules in favor of ACA
In a 6-3 decision on June 25, the Supreme Court upheld the subsidies provision of the Affordable Care Act (ACA). With this ruling it is clear that ACA is here to stay in the foreseeable future.
The issue in the case, King v. Burwell, was whether a specific phrase in the ACA limited the availability of subsidies to help individuals pay for health insurance coverage to state-established exchanges. The majority of states have exchanges established by the federal government rather than by the state. If the Supreme Court had ruled that the ACA prohibits subsidies in federally-established exchanges, the insurance coverage mandated by the ACA would have become unaffordable for many people in these states. Most commentators agreed that without the availability of subsidies in all exchanges, the stability of the ACA, which is built on the assumption of widespread participation, would have been threatened.
Although it removes some uncertainty regarding the ACA’s standing, the ruling allowing subsidies to continue will have little immediate impact on employers, as it maintains the ACA as it has been. Employers will need to continue to ensure that they are complying with all of the ACA’s requirements. California Payroll is here to help you navigate your way through ACA reporting requirements.
IRS Issues Drafts of ACA FORMS FOR 2015
On August 7, 2015, the Internal Revenue Service (IRS) issued drafts of forms and instructions for 2015 Forms 1094-B and 1095-B; and Forms 1094-C and 1095-C. Employers will use the Forms 1094-C and 1095-C to report health insurance coverage offered under employer-sponsored plans in accordance with Section 6056 of the Internal Revenue Code (IRC). Although Forms 1094-C and 1095-C are similar to prior versions, the instructions included some noteworthy revisions.
Employers should keep in mind that the IRS will issue final versions of the 2015 Forms and Instructions in the upcoming months. In the meantime, employers should rely on the 2015 draft Forms and Instructions in planning how to comply with these new IRS reporting requirements.
California Payroll will file forms 1094-C and 1095-C under Section 6065 as part of our new ACA Reporting Services.
When you sign up with our ACA Reporting Services you will receive:

  • Forms 1094-C and 1095-C under Section 6065 prepared and filed
  • ALE status determining tool
  • ACA Eligibility Calculations and Reporting
  • ACA Affordability Calculations and Reporting

California Payroll recognizes that staying on top of employment law is a daunting task that is constantly evolving, such as the Affordable Care Act (ACA), which is why we are here to help.
At California Payroll, We Get It!