Affordable Care Act | TaxConnections

27 Apr 2022

Prop Regs Fix A Premium Tax Credit Issue 7 Years Later

The Affordable Care Act enables individuals to not only purchase insurance on an exchange but to also get a subsidy for it if they qualify. That subsidy is the Premium Tax Credit (PTC). There are eligibility criteria such as purchasing the coverage on an exchange (such as Covered California), if the person is employed the employer does not offer affordable coverage and the household income is below 400% of the federal poverty level.

When regs were issued in 2014 at the start of the PTC, section 36B(c)(2)(C)(i) that includes this clause:

“This clause shall also apply to an individual who is eligible to enroll in the plan by reason of a relationship the individual bears to the employee.”

Written by Annette Nellen | Posted in Affordable Care Act • Property Tax Credit

16 Dec 2020

Affordable Care Act Likely To Withstand Latest Challenge

The U.S. Supreme Court recently heard oral arguments that will be instrumental in determining the fate of the Affordable Care Act. Since the 2017 tax reform legislation reduced the individual mandate to $0, many challenged whether the ACA was constitutional–in other words, whether it could be considered a valid exercise of Congress’ power to tax. Confirmation of new Supreme Court justice Amy Barrett created the real possibility that the ACA could be overturned. However, after hearing oral arguments, two conservative justices–Roberts and Kavanaugh–indicated their support for severance. If that happens, the individual mandate portion of the ACA would be severed from the remainder of the law.

Written by William Byrnes | Posted in Affordable Care Act

21 Feb 2020

Affordable Care Act Reporting Requirements For Employers

The health care law contains tax provisions that affect employers. Two parts of the Affordable Care Act apply only to applicable large employers. These are the employer shared responsibility provisions and the employer information reporting provisions for offers of minimum essential coverage.

The size and structure of a workforce determines which parts of the law apply to which employers. Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.

As such, calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates during the year. You will use information about the size of your workforce during 2019 to determine if your organization is an Applicable large employer (ALE) for 2020.
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Written by Clifford Benjamin | Posted in Affordable Care Act