Patient Protection and Affordable Care Act
Employers: Top 5 Things related to IRS Form 1095 series. Health Insurers and Self Insured Plan sponsors should be concerned in 2017 and making choices for 2017-2018 Plan year
(Do I need to send out Form 1095 with W-2)(No)
1. This Form 1095 is used to report who, what and what type of coverage, along with what months the alternative coverage was offered. Remember the objective is to find out what type of coverage existed each year.
2. As employers we need to start collecting all Social Security Numbers. Your insurance carrier has this information.
3. Must report proof that the plan coverage meets the Minimum Essential Benefits. Note: All plans sold today are ACA compliant.
4. Self Insured Employers: Change your ASO document and make the Insurance Carrier complete and mail the form.
5. Penalties will be enforced possible after 3 IRS attempts
Individuals and Tax Preparers: Form 8962 Premium Tax Credit ) will need to be attached to Form 1040, 1040A and 1040NR
IRS compliance Fact: form 1095-A
1. Form 1095-A - Is necessary for completion of tax returns if coverage was purchased on the exchange.
2. Ask your tax professional validate monthly premiums paid?
3. Testing uses The Second Lowest Cost Silver Plan and premium will be used to calculate exchange tax liability.
(Tax Preparer will need to offer guidance in this area.)
4. Part III Months of Coverage -- What happen when my 26 year old drops off? How will change in cost be calculated?
5. Individual will need to know what subsidy (Advanced Payment), available from insurance carrier, was received in order to complete tax return.
If you need help understanding these issues, we have Enrolled Agents on staff along with a Certified Employee Benefits Specialist.
We have knowledge of all forms and documents to assist Employers and Employees and support your DOL compliance needs.