The Affordable Care Act
As the Affordable Care Act continues to constantly change, many businesses are unsure how to interpret and comply with this complex law. We are knowledgeable in all state and federal laws concerning employee benefits, and we pay close attention to news rules and regulations as they are established.
Accordingly, we will help you with the following ACA compliance:
- Design benefits to meet the requirements of the ACA and other state and federal laws
- Handle all employee forms and notices
- Handle ACA reporting
- Provide training and education on the ACA, and more!
Highlights of the ACA
Following are brief highlights of the ACA provided for your convenience. Because of the complex nature of the ACA, we suggest you call our office for professional assistance.
Both business and individuals may be eligible for tax credits under the ACA. Thus, the credits are applied as a discount on your monthly insurance premium. Accordingly, to see if you are eligible for a tax credit, please use the Subsidy Calculator provided by the Health Insurance Marketplace. Or, if you are a business, use the Small Business Tax Credit Calculator provided by the Health Insurance Marketplace.
Following are rules and guidelines of the ACA that insurance companies most follow when issuing health insurance. Since there have been hundreds of amendments to the Affordable Care Act, so we strongly suggest you call our office for further guidance.
You may be subject to a tax penalty if you do not comply with the ACA. Thus, to be in full compliance with the law, your insurance policy must cover at least 60% of the costs of the following essential benefits.
Employers who have more than 50 full-time equivalent employees must offer those employees benefits that pays for 60% of the minimum essential benefits.
- Applies when at least one employee receives a premium tax credit in the Health Insurance Marketplace
- The penalty is $2,140 per year multiplied by the number of full-time employees, and excludes the first 30 employees.
Individuals who fail to obtain qualifying health insurance may be subject to a tax penalty. (Mandate was repealed in November of 2017 – for 2019 coverage).
- Individuals can have coverage through their employer, or through an individual policy to satisfy the requirement.
- The tax penalty will be $695 for adults. The penalty is $347.50 for each child. The maximum family penalty is the greater of 2.5% of income, or three times the adult penalty, which is $2,085.
- The penalty will be applied on your annual tax return.