Filing 2014 or later tax returns just got a lot more complicated.
Nearly all individuals and businesses living or operating in the United States have addressed or need to address the new health care rules in the Patient Protection and the Affordable Care Act (PPACA), P.L. 111-148, or what we all “affectionately” now call the ACA.
ACA is a tremendously impactful and powerful piece of legislation, and arguably represents one of the most sweeping regulatory changes in US health care laws since Medicare and Medicaid were adopted more than 50 years ago.
Getting into compliance and ensuring proper compliance and reporting can be a tedious undertaking, and the two major compliance challenges right now are 1. Coverage documentation and 2. Standalone health reimbursement arrangements (HRAs).
Our BNKJ tax planning and tax consulting team is well positioned to provide clients with tax and cost issues associated with selecting health insurance plans, and with proper tax reporting and compliance.
Other ACA related services we provide include
- Assessing the tax implications a company would face by not providing the minimum essential coverage (MEC) for the company’s qualifying employees and calculating penalties.
- Helping clients determine if they qualify for an exemption.
- Looking at payroll reporting to ensure compliance regarding standalone health reimbursement arrangements (HRAs). Note that starting in 2014, HRAs constitute “group health plans” that do not meet MEC.
- Helping individual clients report whether or not they had qualifying health insurance for the given tax year, and calculating any penalties. Assessing the outcome of converting full time employees to part time employees.
- Preparing cash flow analysis, preparing tax returns and ensuring tax compliance, including consideration of the Patient-Centered Outcome Research Institute (PCORI) fee (annual fee on self-insured plans to support the PCORI).
- Assessing the short and long term impact of ACA on the company, considering tax deductions and payroll tax savings, account claims and utilization, employer penalties, safe harbor affordability testing, eligibility, etc.
Companies should consult various ACA knowledgeable experienced professionals outside of their CPA, including their insurance provider, tax attorney, payroll company and other ACA experts, to properly navigate through the complexities of health care reform. Our accountants have relationships with several of the top ACA consultants in Georgia who we can recommend, and we will work with them to ensure that our clients are educated on ACA and have the understanding to make well informed business decisions related to ACA.
- Department of Health and Human Services
- Key Features of the ACA
- Health Insurance Marketplace (Centers for Medicare and Medicaid Services)
- Key Features of the ACA by Year
- Employer Shared Responsibility Under the ACA by the U.S. Treasury Department
- IRS Website–ACA page
- Georgia Legal Aid–Know Your Rights Under ACA
- How Georgians Can Access Affordable, Comprehensive Health Insurance–by the American College of Physicians
- Q&A with the IRS–Employer Health Care Arrangements