The Affordable Care Act: 4 Things Employers Should Know Now – December 03, 2015 by Phil Baptiste

TheAffordable Care Act (ACA)has brought about a lot of rules and regulations, but there are a few areas in particular thatemployers need to pay attention to headed into 2016 or risk becomingnoncompliant:

1. Employers with more than 50 employees (“large employers”) are required to report the healthcare coverage they provide employees. Most payroll services can assist in the reporting.

2. For employers with less than 50 employees (“small employers”) who do not offer health insurance or reimburse for individual policies on a tax-deductible basis, no action is required.

3. The biggest risk category will be small employers, less than 50 employees, who are offering some type of health insurance. Beginning in 2015, their group plans need to be ACA compliant. Companies in this category should work with their insurance brokers to make sure they meeting all of the requirements.

4. As of July 1, 2015, employers can no longer pay for individual insurance plans in a tax-favored environment. However, at least for now, self-employed individuals and 2% S Corp Shareholders can continue to pay for and deduct premiums on individual policies.

Each situation is unique, so speak with your advisors to discuss the specific details of your business. For a more in-depth look at the ACA provisions going into 2016.

We want to hear from you! We encourage you to comment below on this blog post, share it on social media or contact Phil Baptiste at pbaptiste@cohencpa.comor a member of your service team for further discussion.