Controlled Group Coverage Q & A

Which employer should offer coverage when you have a shared employee among an Applicable Large Employer (ALE) member/controlled group?

A couple facts: (1) The employee worked hours for two separate companies which were part of a controlled group. (2) The individual’s hours when considered between both companies, made him eligible for an offer of insurance.

Response: The rules state that he is the employee of whichever company he worked more hours for each month.  If he worked the same amount of FT hours for each company each month than the companies need to determine which one will consider him a FT employee.  If they cannot make that determination the IRS will.  He will not be listed on the other company’s 1095-C.  Keep in mind if he worked FT for one company for the first two months and then FT for the other company for the next ten months, he would receive two 1095-C’s.

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.

Proposed Colorado Cares to be Voted on in 2016

Even though the Affordable Care Act has been passed and upheld by the courts, certain taxpayers are suggesting more reforms to the health insurance system. In Colorado, there is currently a group proposing an alternative that would create an independent Colorado health care financing system. The drafters of the new health payment system intend for it to provide payment for health services for residents. The new health payment system would be funded by an additional 10% payroll tax on Colorado residents.  An opinion piece in the Denver Post outlines this plan.  The Colorado Cares website also has additional information about the initiative and the proposed bill.

Change in ACA Law

Effective November 2, 2015, President Obama signed into a law a budget agreement repealing the Affordable Care Act provision requiring employers with more than 200 employees to automatically enroll full-time employees into a health plan offered by the employers.

Background: One of the provisions in the ACA was to mandate employers with more than 200 full-time employees to automatically enroll newly hired full-time employees after their waiting period.  This provision however was put on hold until future guidance was issued.  At this time President Obama has repealed this provision.

Contact your Health Care Reform Specialist with questions.