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  • Writer's pictureTRS CPA


As we begin year end planning, it is a crucial time to review how you are handling the health care reforms contained in the Affordable Care Act. If you employ 50 or more full time and/or full time equivalent (FTE) employees, you may be subject to penalties and reporting requirements for 2015 and/or 2016. If you own multiple companies, the companies may need to be aggregated to determine if you are at the 50 employee threshold. If you are unsure of whether you would be subject to any of the provisions, we would be more than happy to assist you with the calculation. We recommend any company that issues 50 W2’s or more, please contact us.

In effect for 2015 for employers with 50 or more full time or FTE employees:

  • -For each employee who was a full-time employee for one or more months during the calendar year, the company must file a Form 1095-C with the IRS and provide a copy to the employee by January 31, 2016. The Form 1095-C must include details of the offered health insurance and information on all individuals covered by the health plan. Even if you did not offer health insurance, this form must be completed for each full time employee. If you file 250 or more information returns during the calendar year, including W2’s, 1099s, payroll tax returns, business tax returns, etc. you must file the Form 1095-C’s electronically. Failure to file these forms may subject the company to fines in excess of $250 per form.

In effect for 2016 for employers with 50 or more full time or FTE employees:

  • -Same filing requirements as listed above.

  • -If a company doesn’t provide health insurance, provides health insurance that doesn’t offer minimum value, or provides coverage that is unaffordable, then they may be subject to a penalty per-employee, per month if one of their employees receives a premium tax credit to purchase coverage in the individual Marketplace. The penalty is $2,000 for each full time employee minus the first 30 employees if no insurance is offered or if insurance is offered and is considered unaffordable or does not meet the minimum standards then the penalty is $3,000 for each employee receiving a premium tax credit.

If you have 100 or more full time or FTE employees, then the penalties will apply for 2015 as well as 2016. Please do not assume that your benefits provider or payroll vendor is handling any of the above. As always, we would be willing to work with them on your behalf. This issue is time sensitive so please don’t hesitate to get in contact with us as soon as possible.

Very truly yours,

TRS CPA Group, P.A.

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