Health Insurance

You, your employees or your clients may receive one or more forms that provide information about 2015 health coverage. These are Form 1095-A, 1095-B and 1095-C. The following health care tax tips provide some answers to common questions about these forms:

• Form 1095-A: What you need to do with this form
• Form 1095-B: What you need to do with this form
• Form 1095-C: What you need to do with this form

For more information on these forms, see Questions and Answers about health care information forms for individuals, or contact Freyman CPA P.C. for further assistance.

While the cost of health insurance continues to rise and employers have additional responsibilities in order to comply with the Affordable Care Act, there is still a tax benefit specifically for companies providing health insurance coverage. Specifically, employers may be eligible for the health insurance tax credit in 2015 for 50% of the cost of premiums contributed by a small business.

Continue reading

The IRS recently released an update on the tax rules for health reimbursement accounts in relation to the Affordable Care Act (ACA) and S Corporations. This update addresses small businesses that do not offer healthcare coverage, but do reimburse employees for insurance purchased on the healthcare exchanges. The IRS is waiving noncompliance penalties for the 2014 tax year and the first half of 2015.

Is this temporary?

Yes, the IRS has provided relief for businesses to transition to the new ACA rules. Moreover, an employer with less than 50 full-time employees will not be subject to the infamous $36,500 Section 4980D penalty per employee. The relief applies to employers that are conducting an employee reimbursement plan for 2014 and through June 30th, 2015. However, penalties will still be applied beginning on July 1, 2015.

Continue reading