Nestled amid holiday cards may be a less welcome letter from the IRS. The IRS has confirmed that the initial notices to employers that they may owe employer shared responsibility (ESR) penalties are going out before year-end. Letter 226J will address preliminary calculations of amounts employers owe for tax year 2015. Employers subject to theContinue reading “30 Days to Act on IRS Letter 226J”
Category Archives: Taxes
IRS Drops the Mic on Employer Shared Responsibility Payments
Employers who have been counting on the IRS to forget about employer shared responsibility payments apparently have run out of luck. The IRS recently revised one of their FAQ documents to outline their upcoming issuing of penalty demand letters. Employers can look forward to receiving Letter 226J. The letter will include: A summary table itemizingContinue reading “IRS Drops the Mic on Employer Shared Responsibility Payments”
IRS Invokes ACA Individual Health Care Reporting Requirement
The IRS has announced a change of course regarding individual tax returns and ACA compliance. Individual tax returns filed in the 2018 filing season will not be accepted if the taxpayer does not indicate whether they had health coverage. The IRS had previously planned to reject returns without the health coverage information during the 2017Continue reading “IRS Invokes ACA Individual Health Care Reporting Requirement”
Keep on Complying!
One would have to be in a deep sleep to avoid the barrage of “news” regarding Congressional action to repeal the Affordable Care Act (ACA). But, all of the drama does not mean that anything has changed… yet. Health insurance brokers have been fielding calls from clients asking if they still have to file formsContinue reading “Keep on Complying!”
IRS Eases Filing Requirement for Individuals
In response to the Trump administration executive order that directed federal agencies to use discretion to reduce regulatory burdens, the IRS recently reversed course regarding individual tax returns and ACA compliance. The IRS had planned to reject individual tax returns if they were filed without information relating to whether the taxpayer had health coverage. InContinue reading “IRS Eases Filing Requirement for Individuals”
Contribution Strategy May Complicate Compliance
One of the recurring questions posed by NAHU members asks whether employers can vary the employer contribution to health coverage by employee class. For example, an employer may want to pay 75% of coverage for hourly workers and 50% for salaried workers. Or, an employer may want to offer 100% of coverage for workers whoContinue reading “Contribution Strategy May Complicate Compliance”
ACA’s Individual Mandate — IRS Provides Update
With all of the talk about whether the Affordable Care Act will be repealed, replaced, delayed or some other description, one can forget about the fact that individuals have had tax consequences related to the ACA. A recent IRS letter that updated members of Congress about tax return data and the ACA provides an interestingContinue reading “ACA’s Individual Mandate — IRS Provides Update”
21st Century Cures Act Includes New HRA Provision for Small Employers
The 21st Century Cures Act passed the House and Senate on a bipartisan basis and signed by the President on December 13, 2016. This 1,000 page bill includes language that allows small employers to provide health reimbursement arrangement (HRA) funds for employees to purchase individual coverage. Key provisions of Section 18001 titled “Exception from GroupContinue reading “21st Century Cures Act Includes New HRA Provision for Small Employers”
Preparing for 2017 – Checking Status and Filing Forms
Santa may be making a list and checking it twice, but employers have to check their ALE status and prepare to file forms! Employers of all sizes need to take stock by calculating the number of full-time and full-time equivalent employees for the year 2016. If the average meets or exceeds 50, the employer willContinue reading “Preparing for 2017 – Checking Status and Filing Forms”
Marketplace Appeals — The Results
At the risk of sounding like Nick Cannon on the television show America’s Got Talent when they’re announcing performers advancing to the next round of competition, employers are beginning to see the results of appeals that they’ve filed when employees receive subsidies in the marketplace. Employers are finding some of these appeal decisions perplexing, especiallyContinue reading “Marketplace Appeals — The Results”
Compliance NOW! 