As we come up on the 2016 tax season, many organizations with 100+ full-time equivalent employees are preparing to include health insurance information in tax returns for the first time (in accordance with the ACA employer mandate). In addition, organizations are also examining all of the other ACA mandates to ensure they meet the requirements around mandates such as dependent coverage, lifetime and cost-sharing limits, waiting periods, preventive care, patient protections, and cafeteria plans.
Comprehending all of the details and nuances of the ACA requirements – and corresponding penalties – is crucial for all organizations that offer employer sponsored coverage in 2015. While the employer mandate applies only to applicable large employers with 100+ employees, many other mandates and penalties apply to any business that has chosen to offer staff health benefits, regardless of size. Penalties for noncompliance range from a $100/day (per employee) excise tax to varying ERISA penalties to the more significant penalties associated with the employer mandate, which can range from $250/employee to upwards of $2,000/employee.
Taking the time to research and understand all of the potential landmines of the ACA before 2016 may be a time-consuming and complicated process. Although good faith rules may apply to many of the mandates this year, the IRS won’t be as forgiving in 2016. As such, it is essential for any organization that currently offers – or plans to offer (in 2016) – staff health insurance to become well educated in this information as soon as possible to avoid costly penalties in future years.
To learn more about the ACA mandates and possible penalties, as well as key terms and deadlines related to the ACA in 2016, download our free ebook:
The Nonstop Guide to ACA Penalties for the 2015 Tax Year
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose