Intro to Affordable Care Act (ACA)
How the Affordable Care Act Affects You, Your Family and Your Business
The Affordable Care Act (“ACA”) contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, and businesses.
Though certain tax provisions of the ACA (such as the net investment income tax) were previously in effect, this tax season was the first time that individuals filed income tax returns reflecting the major new health care coverage provisions, causing confusion, stress and aggravation.
While the employer-based mandates have yet to take effect, the ACA is already causing fear and uncertainty for all types of businesses, large and small.
Pugh CPAs is here is help! Over the next five months, Pugh CPAs will release a series of email blasts to address the complexity contained within the ACA in the topics below:
- Obamacare: Employer Mandate
- Obamacare: Individual Mandate
- Health Insurance Marketplaces
- Review of Net Investment Income Tax
- Tax Forms and Reporting
- ACA Penalties
Quick Tip: Beginning this year, the ACA requires “large” employers to report information about the health insurance coverage offered to employees. The first of these reports must be filed in early 2016. Employers must be prepared to report the following information to the IRS:
- Whether the employee was a full-time employee each month
- Whether the employee and his/her spouse/dependents were offered health coverage each month that met the minimum value standard
- Whether the employee was enrolled in the health plan
- The monthly cost to the employee of the lowest-cost self-only coverage offered
Detailed information regarding these employer filing requirements will be provided in a future publication.
For additional information regarding the many provisions of the ACA, please contact your tax professional at www.pughcpas.com or 865-769-0660.