Advanced Premium Tax Credits

Many people are unaware that there are potentially beneficial tax credits available in relation to the Affordable Care Act. With proper tax planning, you may be able to save thousands of dollars by taking advantage of the Advanced Premium Tax Credits (APTC). Learn more about these credits and the importance of tax planning in our recent article.

Affordable Care Act Update and Compliance Requirements

There are many things that businesses need to consider regarding the Affordable Care Act, and it can be difficult to keep up with all of the due dates and requirements. Our recent article provides information on a variety of pertinent topics, including:

  • Critical ACA Compliance Test
  • Employment Status Change
  • Transitional Relief
  • Form Information
  • Full-Time or Part-Time Status
  • Signed Waivers
  • Advanced Premium Tax Credit (APTC) Notices Issued
  • 2016 Filing Deadline
  • ACA Form Assistance

Click here to read the article and learn more.

For additional information, contact your Eide Bailly professional, or visit our Health Care Reform website.

Form 1095-C for Employees

New for 2015, large employers are required to give employees who are deemed full-time under the Affordable Care Act (ACA), more commonly known as Obamacare, a Form 1095-C. This form will let employees and the IRS know what type of insurance coverage, if any, was offered to employees.  Employees should provide this document to their individual tax preparer when filing their individual tax return.  For more information about this form please visit the IRS website.

 

1094-C and 1095-C: Are You Aware of Your Filing Requirements?

With tax season now in full swing, employers are busy preparing to distribute W2s and file taxes. However, an alarming amount of businesses are unaware of two very important forms that may be required. Companies can be fined thousands of dollars for failure to file. A recent CNBC article explains.

Updated Health Care Reform Q & A

The many due dates and changes regarding the Affordable Care Act can be tricky to track. The ACA specialists at Eide Bailly aim to make it easier for our clients to understand the ins and outs of Health Care Reform. We recently updated our Q&A section to include pertinent questions on many aspects of Health Care Reform, including business transactions, look-back methods, COBRA plans, and more.

Brief Affordable Care Act Overview

The ACA was passed five years ago and on November 1, 2015 will enter its 3rd enrollment period for the public exchanges. The transitional relief offered to employers from the 4980H pay or play penalties as well as the filing of the information tax returns (1094 and 1095 B and C series) will expire at the end of the year. Applicable large employers (ALEs – the employers potentially susceptible to the 4980H penalties) will be set at 50 full time equivalent employees. In addition the definition of offering coverage will become more stringent as it increases from offering coverage to 70% to 95% of full time employees. Organizations can look to the measurement period safe harbors to help mitigate penalty exposure risk. Lastly, the information tax returns will be due covering the 2015 calendar year on February 28, 2016 for paper filers and on March 30, 2016 for those filing electronic.  Eide Bailly’s Health Care Reform team has helped organizations across the country with ACA questions, compliance, benefit services, and consulting opportunities.

 

Health Care—Increased ACA Employer Mandate Penalties

Applicable large employers that do not offer minimum essential coverage to substantially all (70% in 2015 and 95% in 2016) of their full-time employees may be subject to a penalty under IRC Sec. 4980H(a), if at least one employee enrolls in individual coverage through a state insurance marketplace and receives a premium tax credit or cost-sharing subsidy. Employers that offer minimum essential coverage that is unaffordable and/or does not meet certain minimum value requirements may be subject to a penalty under IRC Sec. 4980H(b) if an employee receives a premium tax credit or cost-sharing subsidy. In its monthly Payroll Industry conference call, the IRS projected the annual per-employee Section 4980H(a) penalty to be $2,080 for 2015 and $2,160 for 2016 and the annual per-employee Section 4980H(b) penalty to be $3,120 for 2015 and $3,240 for 2016.