BIRMINGHAM, Ala.--(BUSINESS WIRE)--DirectPath, the industry leader in employee health care engagement and compliance, today announced a partnership with Sovos Compliance, a global leader in business-to-government tax, compliance and reporting software, to provide large employers with a comprehensive, end-to-end Affordable Care Act IRS reporting solution for the 2016 tax year. DirectPath is now a one-stop-shop for employers looking to easily and efficiently provide employees and the Internal Revenue Service with the necessary documentation required by the new ACA regulation.
The Affordable Care Act mandates that all consumers must report that they are enrolled in a health insurance plan that meets minimum essential coverage standards—or risk paying penalties. Likewise, employers must report that they have made such plans available for employees in order to avoid fines. Creating, distributing and filing all the appropriate forms requires data from multiple sources and cannot be done with the same system that employers use to process W-2 forms. Additionally, forms must be filed under an employer’s federal ID number—and many large employers have multiple. The process of filing these forms can be a major resource drain even for the most organized employers, and it must be completed between December, when all of the information for the year becomes available, and January 31, the deadline for employees to receive their 1095 forms.
“Tax reporting under the Affordable Care Act is the largest expansion of tax reporting since the W-2 was introduced in 1978, and it meant a big adjustment for employers and HR departments,” said Jeff Cronin, vice president of product strategy for ACA at Sovos Compliance. “In 2015, the first year of required ACA reporting, Sovos ACA supported over 1,000 companies and provided services to 20 million households. The combination of DirectPath’s ACA compliance technology and benefits expertise with our IRS filing infrastructure and experience will help more employers maintain compliance with ACA legislation and allow HR departments to focus on serving their employees.”
This year, DirectPath’s ACA compliance offerings have expanded beyond data collection, testing and form creation to also include:
- print and electronic distribution of forms;
- a call center for employees to use if they have any questions or issues; and
- IRS filing services through Sovos.
DirectPath is now one of the only companies to offer a comprehensive ACA reporting solution for large, complex employers.
“We considered working with several vendors to create this offering, but Sovos Compliance was ultimately the only choice in our mind thanks to their unrivalled experience with this complex issue,” said Bart Yancey, CEO of DirectPath. “We’re looking forward to working with them to make this reporting season the easiest one yet for our clients.”
DirectPath and Sovos Compliance will host a joint webinar called “ACA Reporting Best Practices—From Headache to ‘Ah-ha!’” on Tuesday, Sept. 20 at 1:00 p.m. ET that will discuss key take-aways from the first year of ACA reporting and transmittal to the IRS, along with considerations for the 2016 reporting process. Those interested in attending can register here: http://go.directpathhealth.com/l/44312/2016-08-14/81dyy1.
About DirectPath:
DirectPath is an industry leader in
strategic employee engagement and health care compliance for Fortune
1000 employers. Its customers experience significant ROI on their
benefits investments through increased employee participation,
management of the evolving regulatory environment and reduced cost
through efficient benefits plan management technology. DirectPath is
headquartered in Birmingham with offices throughout the country. For
more information, visit the DirectPath website
and follow the company on Twitter.
About Sovos Compliance:
Sovos Compliance is a global leader
in business-to-government tax, compliance and reporting software,
enabling businesses to grow globally by reducing the risks and costs
associated with compliance in thousands of tax jurisdictions around the
world. With a 35-year track record of success in compliance and the
broadest library of tax rules and rates in the world, Sovos helps
finance, tax and HR professionals in 4,500 companies, including half of
the Fortune 500, stay ahead of complex and fast-changing government
regulations. The company’s compliance platform integrates with a wide
variety of business applications, providing the control and visibility
required to manage global tax compliance activities. Based in Boston,
Sovos has offices throughout North America, Latin America, and Europe.
For more information visit www.sovos.com.