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UPDATE: American Health Care Act

May 4th the House passed the American Health Care Act (AHCA.) This chart (courtesy of NAHU.org) displays the content of the legislation. The bill will now be sent to the U.S. Senate where a number of changes are expected to be made. Until this bill is passed by the U.S. Senate and signed into law, all ACA requirements remain in effect, including penalties for noncompliance. Read more about the AHCA.   ...

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HSA Contribution Limits and Minimum Deductibles Announced for 2018

The Internal Revenue Service (IRS) has announced the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code. Annual Contribution Limitation For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a high deductible health plan is $3,450 (up from $3,400 for 2017). The annual limitation on HSA deductions for an individual with family coverage under a high deductible health plan is $6,900 (up from $6,750 for 2017). High Deductible Health Plan Amounts For calendar year 2018, a "high deductible health plan" is defined as a health plan with an annual deductible...

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3 hot spots to look for your successor

Picking someone to lead your company after you step down is probably among the hardest aspects of retiring (or otherwise moving on). Sure, there are some business owners who have a ready-made successor waiting in the wings at a moment’s notice. But many have a few viable candidates to consider — others have too few. When looking for a successor, for best results, keep an open mind. Don’t assume you have to pick any one person — look everywhere. Here are three hot spots to consider. 1. Your family. If yours is a family-owned business, this is a natural place to first...

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How to Appeal a Marketplace Notice

Appeals Due Within 90 Days Health Insurance Marketplaces are now sending letters to notify certain employers that one or more of their employees has been determined eligible for advance premium tax credits and cost-sharing reductions and has enrolled in a Marketplace plan. Because these events may trigger penalties under the Affordable Care Act's "pay or play" provisions for applicable large employers (generally those with 50 or more full-time employees, including full-time equivalents), such employers may seek to appeal an employee's eligibility determination. Employer Appeals Process Employers have 90 days from the date stated on the Marketplace notice to file an appeal. In the...

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2017 Values for Employer-Provided Vehicles Released

The IRS has released the maximum vehicle values for 2017 that taxpayers need to determine the value of personal use of employer-provided vehicles under the IRS’s special valuation rules. 2017 Maximum Vehicle Values The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017, for which the vehicle cents-per-mile valuation rule provided under IRS Regulation section 1.61–21(e) may be applicable, is $15,900 for a passenger automobile, and $17,800 for a truck or van. The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017,...

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How to Determine ALE Status

ALEs Must Comply with ACA's 'Pay or Play' Provisions An employer which has at least 50 full-time employees, including full-time equivalent employees (FTEs), on average during the prior year is generally considered an "applicable large employer" (ALE) under the Affordable Care Act (ACA) for the current calendar year. These employers are subject to the ACA's employer shared responsibility ("pay or play") provisions and information reporting requirements (Forms 1094-C and 1095-C). Here are the steps to determine whether an employer is an ALE: Determine how many full-time employees the employer had in each month of the prior year. For this...

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Determining ‘Full-Time Employees’ Under ‘Pay or Play’

Designation Determined by Hours Worked, Not Employer Classification The employer shared responsibility provisions of the Affordable Care Act (also known as "pay or play") require applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees (FTEs)—to offer affordable health insurance that provides a minimum level of coverage to full-time employees (and their dependents) or pay a penalty tax if any full-time employee is certified to receive a premium tax credit for purchasing individual coverage on the Health Insurance Marketplace. The Internal Revenue Service (IRS) recently addressed a question regarding how an employer's classification of employees as...

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Reminder: Certain Small Employer HRAs Now Exempt From ACA’s Market Reforms

QSEHRAs Must Satisfy Certain Requirements As a reminder, a recent law allows certain small employers to offer new "qualified small employer health reimbursement arrangements" (QSEHRAs) to reimburse employees for qualified medical expenses, including individual health insurance premiums. Background Under prior agency guidance, stand-alone HRAs (except for retiree-only HRAs and HRAs consisting solely of excepted benefits) and HRAs used to purchase coverage on the individual market were considered group health plans that did not comply with certain market reforms of the Affordable Care Act (ACA). As a result, these HRAs were subject to a $100 per day excise tax per applicable employee under the...

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How to Correct Form 1094 & 1095 Errors

To avoid potential noncompliance penalties, employers should confirm the accuracy of all Affordable Care Act (ACA) information returns and correct any errors as soon as possible with both the IRS and their employees. Errors on Forms 1094-C and 1095-C Forms 1094-C and 1095-C are used by applicable large employers to satisfy their reporting obligations. To correct information on the paper version of the original Authoritative Transmittal Form 1094-C, employers should take the following steps: Prepare a new authoritative Form 1094-C including the correct information Enter an "X" in the CORRECTED checkbox at the top of the form File the standalone corrected authoritative Form 1094-C with the...

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