The Patient Protection and Affordable Care Act of 2010 (ACA) has many tax provisions written within its 906 pages. I’ll give a brief overview of the taxes, and sprinkle in some good news among some not-so-good news.
The Patient Protection and Affordable Care Act of 2010 (ACA) has many tax provisions written within its 906 pages. I’ll give a brief overview of the taxes, and sprinkle in some good news among some not-so-good news.
Topics: ACA, PPACA, Patient Centered Outcomes Research Institute, Transitional Reinsurance Fee, Jennifer Kupper, Play or Pay, Cadillac Tax, employer shared responsibility, ACA excise tax, ACA penalties, health insurers providers fee
The Affordable Care Act's Employer-Shared Responsibility (ESR), otherwise known as Play or Pay, is here! Not only are employers struggling to apply the once-abstract-but-now-actual complex and convoluted rules and regulations, employers are facing yet another hurdle – Affordable Care Act (ACA) Information Returns (AIR).
Topics: ACA, Jennifer Kupper, iaCONSULTING, Play or Pay, employer-shared responsibility reporting, Affordable Care Act, Affordable Care Act Information Returns
Background
Under the Patient Protection and Affordable Care Act (ACA), individuals are required to have health insurance while applicable large employers (ALEs) are required to offer health benefits to their full-time employees.
Topics: PPACA Affordable Care Act, 6055 Reporting, 6056 Reporting, Play or Pay, Individual mandate, employer shared responsibility, Danielle Capilla
The employer shared responsibility (i.e., "play or pay") requirements went into effect in 2015 for large employers only (those with 100 or more full-time or full-time-equivalent employees). Even though they generally will not be liable for penalties until 2016, mid-size employers (employers with 50 to 99 full-time or full-time-equivalent employees) will need to report on the coverage they offered for 2015, so long as they meet the maintenance requirements for transition relief. To avoid penalties – beginning in 2015 for large employers, and in 2016 for eligible mid-size employers – employers must offer health benefits to employees who work an average of 30 or more hours per week, or 130 hours per month.
Topics: PPACA Affordable Care Act, health benefits, Play or Pay, United Benefit Adivsors, Danielle Capilla, employer-shared responsibility reporting, transition relief
Employers that do not meet the requirements of the Patient Protection and Affordable Care Act (PPACA) need to be concerned about several potential penalties. Two significant penalties include the excise tax, which can be as much as $100 per affected individual per day, and the penalties that larger employers must pay if they do not meet their employer-shared responsibility/play or pay obligations.
Topics: PPACA Affordable Care Act, Play or Pay, excise tax, employer shared responsibility, IRS Form 8928
On March 4, 2015, the U.S. Supreme Court heard oral arguments in King v. Burwell, a case that centers on the meaning of statutory language in the Patient Protection and Affordable Care Act (PPACA). At question in the case is whether or not the Internal Revenue Service (IRS) may issue regulations to extend tax-credit subsidies to coverage purchased through health Exchanges established by the federal government via the Department of Health and Human Services (HHS) under Section 1321 of PPACA.
Topics: health insurance exchanges, PPACA Affordable Care Act, Play or Pay, health care subsidies, employer shared responsibility, tax-credit subsidy
The employer-shared responsibility (“play or pay”) requirements do not apply to small employers and have been delayed until 2016 for most mid-sized employers. This raises the question – what exactly is included in the play or pay requirement, which a small employer may be able to ignore and that mid-size employer may not need to meet until later?
Topics: Linda Rowings, employers, Play or Pay, mid-sized
