Health Care Reform Updates & Human Resource News Alerts

Health Care Reform News

HR360::Health Care Reform
  • Reminder: Form 1094 & 1095 Deadlines Approaching

    Posted on February 15, 2018
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    Certain Employers Required to Electronically File Returns

    Employers subject to the Affordable Care Act's (ACA) information reporting requirements are reminded that the deadlines to file and furnish Forms 1094 and 1095 are quickly approaching. The reporting deadlines in 2018 are for reporting information on the 2017 calendar year, and are as follows:

    • Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must file Forms 1094-C and 1095-C with the IRS no later than February 28, 2018 (or April 2, 2018 if filing electronically). ALEs must also furnish a Form 1095-C to all full-time employees by March 2, 2018.
    • Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage, must file Forms 1094-B and 1095-B with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). These entities are also required to furnish a Form 1095-B to "responsible individuals" (may be the primary insured, employee, former employee, or other related person named on the application) by March 2, 2018.

    Electronic Filing Requirements
    Reporting entities filing 250 or more Forms 1095-B or Forms 1095-C must electronically file them with the IRS. Additional information on electronic filing can be found on the IRS ACA Information Returns (AIR) Program webpage.

    © 2018 HR 360, Inc.
  • IRS Updates Q&As on ACA Information Reporting

    Posted on February 06, 2018
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    Form 1094-C & 1095-C Requirements Addressed

    The Internal Revenue Service has updated its Q&As regarding Form 1094-C and 1095-C information reporting by applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year. The Q&As answer the following questions and more:

    • For which employees must an ALE file Form 1095-C?
    • What information must be an ALE furnish to its employees?
    • How should information about an offer of coverage for the month in which an employee is hired be reported on Form 1095-C?
    • How should an ALE complete Form 1095-C for a full-time employee who terminates employment during a calendar year and receives an offer of COBRA continuation coverage?
    • Should an ALE report coverage under a health reimbursement arrangement (HRA) for an individual who is enrolled in both the HRA and the employer’s other self-insured major medical group health plan?

    Click here to read the updated Q&As.

    © 2018 HR 360, Inc.
  • 3 Key ACA Terms Employers Need to Know

    Posted on February 02, 2018
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    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 and provides minimum value to their full-time employees (and their dependents). 

    Here are definitions to help employers understand these key terms:

    Minimum Essential Coverage: Minimum essential coverage includes, among other things, coverage under an employer-based plan (including self-insured plans, retiree plans, and COBRA coverage). It does not include fixed indemnity, life insurance, dental, or vision coverage. Click here for more on what qualifies as minimum essential coverage.

    Affordable Coverage: For plan years beginning in 2018, coverage is generally considered affordable if the employee’s required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. Given that employers are unlikely to know an employee’s household income, for purposes of pay or play, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages.  

    Minimum Value: An employer-sponsored plan provides minimum value if it covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan. Employers generally must use a minimum value calculator developed by the U.S. Department of Health and Human Services (HHS) to determine if a plan with standard features provides minimum value. Plans with nonstandard features are required to obtain an actuarial certification for any nonstandard features. HHS has also proposed regulations for certain safe harbor plan designs that will satisfy minimum value.

    For more information on which ACA provisions apply to your company, visit the IRS webpage on ACA Tax Provisions for Employers.

    © 2018 HR 360, Inc.
  • 'Cadillac Tax' Delayed Until 2022

    Posted on January 23, 2018
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    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 $10,200 (for self-only coverage) and $27,500 (for family coverage)—was set to become effective in 2020.

    © 2018 HR 360, Inc.
  • Reminder: 2018 'Pay or Play' Affordability Percentage is 9.56%

    Posted on January 19, 2018
    Print

    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 (and their dependents) in 2018. As a reminder, for plan years beginning in 2018, coverage will generally be considered affordable if the employee's required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. For plan years beginning in 2017, the applicable percentage was 9.69%.

    Given that employers are unlikely to know an employee's household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages. Click here for more information on these safe harbors.

    © 2018 HR 360, Inc.
  • Reminder: Individual Mandate Remains in Effect for 2018

    Posted on January 12, 2018
    Print

    Requirement is Effectively Repealed Beginning in 2019

    Individuals are reminded that the section of the Tax Cuts and Jobs Act which effectively repealed the individual shared responsibility provision ("individual mandate") of the Affordable Care Act does not become effective until 2019. As a result, individuals are required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax for 2018.

    © 2018 HR 360, Inc.

    HR News and Alerts

    HR360::Health Care Reform
    • Reminder: Form 1094 & 1095 Deadlines Approaching

      Posted on February 15, 2018
      Print

      Certain Employers Required to Electronically File Returns

      Employers subject to the Affordable Care Act's (ACA) information reporting requirements are reminded that the deadlines to file and furnish Forms 1094 and 1095 are quickly approaching. The reporting deadlines in 2018 are for reporting information on the 2017 calendar year, and are as follows:

      • Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must file Forms 1094-C and 1095-C with the IRS no later than February 28, 2018 (or April 2, 2018 if filing electronically). ALEs must also furnish a Form 1095-C to all full-time employees by March 2, 2018.
      • Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage, must file Forms 1094-B and 1095-B with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). These entities are also required to furnish a Form 1095-B to "responsible individuals" (may be the primary insured, employee, former employee, or other related person named on the application) by March 2, 2018.

      Electronic Filing Requirements
      Reporting entities filing 250 or more Forms 1095-B or Forms 1095-C must electronically file them with the IRS. Additional information on electronic filing can be found on the IRS ACA Information Returns (AIR) Program webpage.

      © 2018 HR 360, Inc.
    • IRS Updates Q&As on ACA Information Reporting

      Posted on February 06, 2018
      Print

      Form 1094-C & 1095-C Requirements Addressed

      The Internal Revenue Service has updated its Q&As regarding Form 1094-C and 1095-C information reporting by applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year. The Q&As answer the following questions and more:

      • For which employees must an ALE file Form 1095-C?
      • What information must be an ALE furnish to its employees?
      • How should information about an offer of coverage for the month in which an employee is hired be reported on Form 1095-C?
      • How should an ALE complete Form 1095-C for a full-time employee who terminates employment during a calendar year and receives an offer of COBRA continuation coverage?
      • Should an ALE report coverage under a health reimbursement arrangement (HRA) for an individual who is enrolled in both the HRA and the employer’s other self-insured major medical group health plan?

      Click here to read the updated Q&As.

      © 2018 HR 360, Inc.
    • 3 Key ACA Terms Employers Need to Know

      Posted on February 02, 2018
      Print

      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 and provides minimum value to their full-time employees (and their dependents). 

      Here are definitions to help employers understand these key terms:

      Minimum Essential Coverage: Minimum essential coverage includes, among other things, coverage under an employer-based plan (including self-insured plans, retiree plans, and COBRA coverage). It does not include fixed indemnity, life insurance, dental, or vision coverage. Click here for more on what qualifies as minimum essential coverage.

      Affordable Coverage: For plan years beginning in 2018, coverage is generally considered affordable if the employee’s required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. Given that employers are unlikely to know an employee’s household income, for purposes of pay or play, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages.  

      Minimum Value: An employer-sponsored plan provides minimum value if it covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan. Employers generally must use a minimum value calculator developed by the U.S. Department of Health and Human Services (HHS) to determine if a plan with standard features provides minimum value. Plans with nonstandard features are required to obtain an actuarial certification for any nonstandard features. HHS has also proposed regulations for certain safe harbor plan designs that will satisfy minimum value.

      For more information on which ACA provisions apply to your company, visit the IRS webpage on ACA Tax Provisions for Employers.

      © 2018 HR 360, Inc.
    • 'Cadillac Tax' Delayed Until 2022

      Posted on January 23, 2018
      Print

      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 $10,200 (for self-only coverage) and $27,500 (for family coverage)—was set to become effective in 2020.

      © 2018 HR 360, Inc.
    • Reminder: 2018 'Pay or Play' Affordability Percentage is 9.56%

      Posted on January 19, 2018
      Print

      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 (and their dependents) in 2018. As a reminder, for plan years beginning in 2018, coverage will generally be considered affordable if the employee's required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. For plan years beginning in 2017, the applicable percentage was 9.69%.

      Given that employers are unlikely to know an employee's household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages. Click here for more information on these safe harbors.

      © 2018 HR 360, Inc.
    • Reminder: Individual Mandate Remains in Effect for 2018

      Posted on January 12, 2018
      Print

      Requirement is Effectively Repealed Beginning in 2019

      Individuals are reminded that the section of the Tax Cuts and Jobs Act which effectively repealed the individual shared responsibility provision ("individual mandate") of the Affordable Care Act does not become effective until 2019. As a result, individuals are required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax for 2018.

      © 2018 HR 360, Inc.