New year brings new ACA requirements for businesses and individuals
Posted On: 2-6-2015 | Posted By: WK Staff
The beginning of each new year brings new requirements under the Patient Protection and Affordable Care Act, and 2015 is a year of significant changes. Businesses and individuals must be aware of their responsibilities in order to avoid penalties.
This is the year large employers (those with 100 or more full-time equivalent employees who meet certain conditions) must comply with the ACA requirement to offer affordable health coverage that provides at least minimum value to their full-time employees and their dependents or face a penalty. This is commonly known as the “employer mandate.” In addition to providing affordable health coverage, employers must also report the coverage to the Internal Revenue Service.
Mid-size employers (those with 50-99 full-time equivalent employees) have a reprieve from the requirement to offer coverage until 2016, but they still must report coverage to the IRS this year. Small employers (fewer than 50 full-time equivalent employees) are exempt from the employer mandate unless they sponsor a self-insured health plan.
Read more information about 2015 ACA requirements for businesses and contact your WK advisor for guidance regarding compliance.
2015 will be the first year Americans must prove they maintained minimum essential health coverage for each calendar month of 2014, which is reported on the 2014 tax return. The tax return is also the vehicle for paying any penalties for failing to maintain that coverage and for claiming a premium tax credit, if the taxpayer is eligible for it.
There are new reporting requirements in effect this year for all individuals required to file a tax return. Those who purchased health coverage through a state or federal Marketplace should have received a statement from the exchange. The reporting requirement for private health coverage was delayed until the 2015 coverage year, so statements will not be issued by private insurers until 2016 for the 2015 coverage year.
Any individuals who are exempt from the minimum coverage mandate should complete Form 8965, Health Coverage Exemptions. Our article on 2015 ACA requirements for individuals outlines the various exemptions.
For more information on any aspect of the Affordable Care Act, contact your WK advisor at (573) 442-6171 or (573) 635-6196.