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November 11, 2017
Latest Proposals In Congress
- Republican Proposals
- Democrat Proposals
STATUS OF ACA THE RASH THAT WONT GO AWAY Marc S. Wise, Esq. - - PowerPoint PPT Presentation
STATUS OF ACA THE RASH THAT WONT GO AWAY Marc S. Wise, Esq. - - PowerPoint PPT Presentation
November 11, 2017 STATUS OF ACA THE RASH THAT WONT GO AWAY Marc S. Wise, Esq. November 11, 2017 Latest Proposals In Congress Republican Proposals Democrat Proposals 2 November 11, 2017 Republican Proposals Congressional
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November 11, 2017
Republican Proposals
- Congressional Republicans – Repeal and Replace, Repeal
and Replace, Repeal and Replace
- Executive Orders
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November 11, 2017
Executive Orders
- Association Health Plans
- Short-Term Limited Duration Insurance
- Health Reimbursement Arrangements
- Contraceptive / Abortion Services
- Cost-Sharing Reduction Payments
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November 11, 2017
Democratic Party Solution
- Fix ACA
- Medicare for All Act of 2017
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Growing Up To Be A Large Employer
- 4 Step Analysis
- Determination Based on Prior Year Analysis
- Controlled Group Rules Apply
- Professional Employer Organizations
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ACA Penalties
- 1094 / 1095 Reporting and Disclosures
- Electronic Reporting
- Common Law Employer
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November 11, 2017
Form 1094 / 1095 Reporting Deadlines
- 1095-C to Employees – 1/31/18
- Paper Filing with IRS – 2/28/18
- eFiling with IRS – 4/2/18
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ACA Assessments and Error Reports
- IRS Letter 5699
- Acceptance with Errors
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November 11, 2017
ACA Reporting Penalties
Description Old Penalty Amount New Penalty Amount
Penalty for filing incorrect returns (per return) $100 $250 Penalty for incorrect returns if corrected within 30 days (per return) $30 $50 Penalty for incorrect returns if corrected by August 1 (per return) $60 $100 Penalty for intentionally disregarding to file timely and correct returns $250 $500 Maximum penalty per calendar year $1,500,000 $3,000,000 Maximum penalty per calendar year if corrected with 30 days $250,000 $500,000 Maximum penalty per calendar year if corrected by August 1 $500,000 $1,500,000
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Non-Compliant Employer Penalty Examples
Example 1 – No Compliance – 110 Employees Not Intentional = $55,000 per year ($250 x 110 x 2 years) Intentional = $110,000 per year ($500 x 110 x 2 years)
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November 11, 2017
Non-Compliant Employer Penalty Examples
Example 2 – Filed But Insurance Is Not “Affordable” No reporting penalties since employer filed with IRS and provided the 1095-C to the employees.
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2018 Rates and Penalties
- Affordability – 9.56%
- Poverty Safe Harbor - $96.08
- Employer Mandate “A” Penalty - $2,320
- Employer Mandate “B” Penalty - $3,480
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November 11, 2017
IRC 4980H Penalty Analysis
2017 Calendar Year Analysis
- 110 Full-Time Employees
- 3 Employees Receive Subsidized Insurance
“A” Penalty - $180,800 “B” Penalty - $10,170 Cheaper to offer unaffordable insurance rather than no insurance.
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November 11, 2017
ASSESSMENT/PAYMENT OF PAY OR PLAY PENALTY
- Assessments are Coming
- IRS Letter 226J
- IRS Letter 227
- Notice CP 220J