BAS Blog


 

Tax Reform and ACA Individual Mandate

This week, the United States House of Representatives and the United States Senate passed what is being referred to as the "Tax Cuts and Jobs Act.” The President is expected to sign the tax reform legislation shortly.
 
The Tax Cuts and Jobs Act includes a few provisions that impact employee benefits. A much talked-about provision is a change to the individual mandate required by the Affordable Care Act (“ACA"). The Tax Cuts and Jobs Act reduces the penalty for an individual not having health coverage to $0. Under the ACA, individuals were required to have health coverage meeting certain minimum value each month, qualify for an exemption, or pay a tax penalty. The penalty will be reduced to $0 starting in 2019, which in operation nullifies the individual mandate.  
 
It is important to note that the requirement for individuals to have proper health coverage in 2017 and 2018 remains in place. Individual income tax returns electronically filed for 2017 must have the individual mandate question completed (see our prior article by clicking here.) It is also important to note that the Tax Cuts and Jobs Act does not make any changes to the requirement for applicable large employers to offer health coverage to their full-time employees, or the requirement to furnish ACA reporting forms (Forms 1094/1095) to individuals and the IRS.
 
For help with ACA reporting and compliance, contact your account manager or solutions@BASusa.com.
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Question of the Week

Q.- An employee’s son is losing coverage under our health plan because he just got married. Do we issue him a COBRA notice?

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Employer Notice Posting Requirements

The beginning of the year is a good time to ensure your HR compliance is in order. This includes making sure notices are posted appropriately, if required.

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IRS To Enforce ACA Pay or Play Employer Mandate

The IRS will begin enforcing the employer shared responsibility provisions of the Affordable Care Act later this year.  The employer shared responsibility provisions require applicable large employers to offer affordable health coverage providing minimum value to their full-time employees or make a payment to the IRS if one of their full-time employees receives a tax credit for purchasing individual coverage through the health insurance Marketplace.

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Question of the Week

Q.- May we offer a carryover provision in our Dependent Care FSA like we do for our Health Care FSA?

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New Minimum Wage for Certain Federal Contracts

Employers with certain federal construction, service and concession contracts must be prepared to pay an increased hourly minimum wage starting January 1, 2018. On this date, the minimum wage rate for employees performing work on covered contracts will increase from $10.20 per hour to $10.35 per hour. The minimum wage rate for tipped employees will increase from $6.80 per hour to $7.25 per hour.

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Who is the Employer for ACA?

The Affordable Care Act requires an applicable large employer to offer it’s full-time employees affordable health coverage that provides minimum value.

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OSHA Electronic Data Submission

The Occupational Safety and Health Administration (OSHA), a sub-agency of the U.S. Department of Labor, was created in 1970 to assure safe and healthful working conditions by setting and enforcing standards and by providing training, outreach, education and assistance. OSHA generally regulates private sector employers.

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Question of the Week

Q.- We are a large employer with a fully-insured medical plan. We offer coverage to full-time and part-time employees. Do we send Form 1095-C to our part-time employees?

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ACA Reporting Tax Form Primer

The IRS has issued revised versions of Forms 1095-B/C and 1094-B/C, along with instructions for completing the forms, for the 2017 tax year. The 1095 series of forms must be furnished to individuals by January 31, 2018. With no delay to the filing date anticipated and the IRS’ confirmation that e-filers will have to indicate compliance with the individual mandate on their tax returns, employers should prepare for the distribution requirements.

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