Health Care Reform Updates & Human Resource News Alerts

Health Care Reform News

HR360::Health Care Reform
  • 'Cadillac Tax' Delayed Until 2022

    Posted on January 23, 2018
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    Tax Previously Set to Become Effective in 2020

    President Trump has signed the Extension of Continuing Appropriations Act, which (among other things) delays implementation of the "Cadillac Tax," the Affordable Care Act's excise tax on high-cost employer-sponsored health coverage, until 2022. Previously, this tax—which would impose a 40% tax on plans that cost more than $10,200 (for self-only coverage) and $27,500 (for family coverage)—was set to become effective in 2020.

    © 2018 HR 360, Inc.
  • Reminder: 2018 'Pay or Play' Affordability Percentage is 9.56%

    Posted on January 19, 2018
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    Percentage Down from 2017

    Under the employer shared responsibility ("pay or play") provisions of the Affordable Care Act, applicable large employers—generally those who had 50 or more full-time employees (including full-time equivalent employees) in 2017—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees (and their dependents) in 2018. As a reminder, for plan years beginning in 2018, coverage will generally be considered affordable if the employee's required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. For plan years beginning in 2017, the applicable percentage was 9.69%.

    Given that employers are unlikely to know an employee's household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages. Click here for more information on these safe harbors.

    © 2018 HR 360, Inc.
  • Reminder: Individual Mandate Remains in Effect for 2018

    Posted on January 12, 2018
    Print

    Requirement is Effectively Repealed Beginning in 2019

    Individuals are reminded that the section of the Tax Cuts and Jobs Act which effectively repealed the individual shared responsibility provision ("individual mandate") of the Affordable Care Act does not become effective until 2019. As a result, individuals are required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax for 2018.

    © 2018 HR 360, Inc.
  • DOL Proposal Encourages Creation of Association Health Plans

    Posted on January 05, 2018
    Print

    Rule Would Permit Associations Based on Industry or Geography

    The U.S. Department of Labor (DOL) has issued a proposed rule which would allow employers to join together as a single group to offer group health insurance coverage to current employees, former employees, working owners, and their family members as part of an "association health plan." If finalized, the rule would allow association health plans to be formed on the basis of industry or geography, such as by state, city, county, or metropolitan area.

    Notably, the proposed rule would subject association health plans to the nondiscrimination rules currently applicable to large group coverage under the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Affordable Care Act (ACA). These rules prohibit discrimination based on a health factor or within groups of similarly situated individuals, but do generally permit plans to impose different eligibility provisions and costs based on bona-fide employment-based classifications, such as full-time versus part-time status.

    Click here to read the proposed rule in its entirety.

    © 2018 HR 360, Inc.
  • 5 Things ALEs Need to Know About Information Reporting in 2018

    Posted on December 29, 2017
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    Forms 1095-C Due to Full-Time Employees by March 2, 2018

    Under the Affordable Care Act, applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year—must report certain information to their full-time employees and the Internal Revenue Service (IRS) about the health care coverage they have offered (if any). 

    With deadlines for 2017 reporting just a few months away, ALEs should begin thinking about these five information reporting facts:

    1. ALEs are required to furnish Form 1095-C to each of its full-time employees by March 2, 2018 (new extended deadline). 
    2. ALEs must file Forms 1095-C, accompanied by the transmittal Form 1094-C, with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). 
    3. Self-insured ALEs must also report via Forms 1094-C and 1095-C. 
    4. ALEs that file 250 or more Forms 1095-C must file them electronically.
    5. ALEs can find a complete list of resources and the latest news at the IRS's Applicable Large Employer Information Center.

    For further details on filing and furnishing Forms 1094-C and 1095-C, please see the latest form instructions.

    © 2018 HR 360, Inc.
  • Forms 1095-B and 1095-C Furnishing Deadlines Extended

    Posted on December 22, 2017
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    Good Faith Penalty Relief Also Extended

    The IRS has extended the due dates for furnishing 2017 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2018, to March 2, 2018. The IRS has also extended good faith penalty relief to reporting entities who make certain calendar year 2017 information reporting errors. However, the deadline to file 2017 Forms 1095-B and 1095-C with the IRS remains February 28, 2018 (or April 2, 2018, if filing electronically).

    Penalty Relief Extension
    The IRS has extended penalty relief to reporting entities that can show that they made good faith efforts to comply with the calendar year 2017 information reporting requirements (both for furnishing to individuals and for filing with the IRS). This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.

    Background
    Applicable large employers must use Form 1095-C to report information to their full-time employees about the health care coverage they have offered in a calendar year. Alternatively, Form 1095-B is used by insurers, self-insuring employers, and other parties that provide minimum essential health coverage to report information on this coverage to covered individuals. Employers subject to both reporting provisions (generally self-insured employers with 50 or more full-time employees, including FTEs) will satisfy their reporting obligations using Form 1095-C.

    Click here for more information from the IRS.

    © 2018 HR 360, Inc.

    HR News and Alerts

    HR360::Health Care Reform
    • 'Cadillac Tax' Delayed Until 2022

      Posted on January 23, 2018
      Print

      Tax Previously Set to Become Effective in 2020

      President Trump has signed the Extension of Continuing Appropriations Act, which (among other things) delays implementation of the "Cadillac Tax," the Affordable Care Act's excise tax on high-cost employer-sponsored health coverage, until 2022. Previously, this tax—which would impose a 40% tax on plans that cost more than $10,200 (for self-only coverage) and $27,500 (for family coverage)—was set to become effective in 2020.

      © 2018 HR 360, Inc.
    • Reminder: 2018 'Pay or Play' Affordability Percentage is 9.56%

      Posted on January 19, 2018
      Print

      Percentage Down from 2017

      Under the employer shared responsibility ("pay or play") provisions of the Affordable Care Act, applicable large employers—generally those who had 50 or more full-time employees (including full-time equivalent employees) in 2017—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees (and their dependents) in 2018. As a reminder, for plan years beginning in 2018, coverage will generally be considered affordable if the employee's required contribution for the lowest cost self-only health plan is 9.56% or less of his or her household income for the taxable year. For plan years beginning in 2017, the applicable percentage was 9.69%.

      Given that employers are unlikely to know an employee's household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages. Click here for more information on these safe harbors.

      © 2018 HR 360, Inc.
    • Reminder: Individual Mandate Remains in Effect for 2018

      Posted on January 12, 2018
      Print

      Requirement is Effectively Repealed Beginning in 2019

      Individuals are reminded that the section of the Tax Cuts and Jobs Act which effectively repealed the individual shared responsibility provision ("individual mandate") of the Affordable Care Act does not become effective until 2019. As a result, individuals are required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax for 2018.

      © 2018 HR 360, Inc.
    • DOL Proposal Encourages Creation of Association Health Plans

      Posted on January 05, 2018
      Print

      Rule Would Permit Associations Based on Industry or Geography

      The U.S. Department of Labor (DOL) has issued a proposed rule which would allow employers to join together as a single group to offer group health insurance coverage to current employees, former employees, working owners, and their family members as part of an "association health plan." If finalized, the rule would allow association health plans to be formed on the basis of industry or geography, such as by state, city, county, or metropolitan area.

      Notably, the proposed rule would subject association health plans to the nondiscrimination rules currently applicable to large group coverage under the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Affordable Care Act (ACA). These rules prohibit discrimination based on a health factor or within groups of similarly situated individuals, but do generally permit plans to impose different eligibility provisions and costs based on bona-fide employment-based classifications, such as full-time versus part-time status.

      Click here to read the proposed rule in its entirety.

      © 2018 HR 360, Inc.
    • 5 Things ALEs Need to Know About Information Reporting in 2018

      Posted on December 29, 2017
      Print

      Forms 1095-C Due to Full-Time Employees by March 2, 2018

      Under the Affordable Care Act, applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year—must report certain information to their full-time employees and the Internal Revenue Service (IRS) about the health care coverage they have offered (if any). 

      With deadlines for 2017 reporting just a few months away, ALEs should begin thinking about these five information reporting facts:

      1. ALEs are required to furnish Form 1095-C to each of its full-time employees by March 2, 2018 (new extended deadline). 
      2. ALEs must file Forms 1095-C, accompanied by the transmittal Form 1094-C, with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). 
      3. Self-insured ALEs must also report via Forms 1094-C and 1095-C. 
      4. ALEs that file 250 or more Forms 1095-C must file them electronically.
      5. ALEs can find a complete list of resources and the latest news at the IRS's Applicable Large Employer Information Center.

      For further details on filing and furnishing Forms 1094-C and 1095-C, please see the latest form instructions.

      © 2018 HR 360, Inc.
    • Forms 1095-B and 1095-C Furnishing Deadlines Extended

      Posted on December 22, 2017
      Print

      Good Faith Penalty Relief Also Extended

      The IRS has extended the due dates for furnishing 2017 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2018, to March 2, 2018. The IRS has also extended good faith penalty relief to reporting entities who make certain calendar year 2017 information reporting errors. However, the deadline to file 2017 Forms 1095-B and 1095-C with the IRS remains February 28, 2018 (or April 2, 2018, if filing electronically).

      Penalty Relief Extension
      The IRS has extended penalty relief to reporting entities that can show that they made good faith efforts to comply with the calendar year 2017 information reporting requirements (both for furnishing to individuals and for filing with the IRS). This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.

      Background
      Applicable large employers must use Form 1095-C to report information to their full-time employees about the health care coverage they have offered in a calendar year. Alternatively, Form 1095-B is used by insurers, self-insuring employers, and other parties that provide minimum essential health coverage to report information on this coverage to covered individuals. Employers subject to both reporting provisions (generally self-insured employers with 50 or more full-time employees, including FTEs) will satisfy their reporting obligations using Form 1095-C.

      Click here for more information from the IRS.

      © 2018 HR 360, Inc.