Percentage Down from 2017 Under the employer shared responsibility (“pay or play”) provisions of the Affordable Care Act, applicable large employers—generally those who had 50 or more full-time employees (including full-time equivalent employees) in 2017—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees…
Tax Previously Set to Become Effective in 2020 President Trump has signed the Extension of Continuing Appropriations Act, which (among other things) delays implementation of the “Cadillac Tax,” the Affordable Care Act’s excise tax on high-cost employer-sponsored health coverage, until 2022. Previously, this tax—which would impose a 40% tax on plans that cost more than…
Definitions Essential to Understanding ‘Pay or Play’ Compliance In general, under the employer shared responsibility (“pay or play”) provisions of the Affordable Care Act (ACA), applicable large employers—generally those with 50 or more full-time employees, including full-time equivalent employees—may be subject to a penalty if they do not offer minimum essential coverage that is affordable…
On Jan. 12, 2018, the Maryland General Assembly overrode Gov. Larry Hogan’s 2017 veto of the Maryland Healthy Working Families Act, which requires employers in the state to permit employees to earn and use sick and safe leave. Absent further legislative action, the measure will become effective Feb. 11, 2018. Accordingly, Maryland should prepare to…
The IRS has extended the due dates for furnishing 2017 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2018, to March 2, 2018. The IRS has also extended good faith penalty relief to reporting entities who make certain calendar year 2017 information reporting errors. However, the deadline to file 2017 Forms 1095-B and 1095-C with…
Form Used by Eligible Employers to Claim Credit for 2017 Tax Year The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers use this form to figure the credit for health insurance premiums under the Small Business Health Care Tax Credit. The…
Repeal Effective in 2019 President Trump has signed into law the Tax Cuts and Jobs Act, which, among other things, effectively repeals the Affordable Care Act’s (ACA) individual mandate beginning in 2019. Individual Mandate Repeal Effective in 2019 Under the ACA, individuals are currently required to have minimum essential health coverage, qualify for an exemption…
Forms 1095-C Due to Full-Time Employees by March 2, 2018 Under the Affordable Care Act, applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year—must report certain information to their full-time employees and the Internal Revenue Service (IRS) about the health care coverage they have…
The IRS recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2018. Although some of the limits will remain the same, many of the limits will increase for 2018. The annual limits for the following commonly offered employee benefits will increase for 2018: High deductible health plans…
Notice & Other Requirements Clarified The Internal Revenue Service (IRS) has released guidance further clarifying the rules regulating qualified small employer health reimbursement arrangements (QSEHRAs). QSEHRAs—which are health reimbursement arrangements exempt from the Affordable Care Act’s market reforms—may be offered by employers with fewer than 50 full-time equivalent employees that do not offer a group…
