BTerrell Group Blog

Tax season has begun, and many tax professionals are striving to stay on top of their clients’ Affordable Care Act (ACA) issues.  Businesses have been struggling to get systems in place and individuals are hoping that their employers can provide the necessary support.  Tax professionals can guide clients through the upcoming tax season by sharing this helpful information.

According to “Key Affordable Care Act Changes for Tax Year 2015,” posted by Mike D’Avolio on AccountingWeb.com, most individuals will be able to indicate on their IRS Form 1040 that they had qualifying healthcare coverage for the year.  However, for those that may not have had coverage for the full year, the penalty can be hard to swallow.  The fee has increased to $325 per adult and $162.50 per child and individuals may be eligible to claim an exemption.

Businesses will have a more difficult time gearing up for tax season.  Those with fewer than 50 employees will use IRS Form 1095-B if they self-fund their employee health benefit.  Employers with 50 or more employees will use IRS Form 1095-C to report appropriate employee coverage information, whether self-funded or not.  The Employer Shared Responsibility (ESR) Provision indicates that employers must provide employees with minimum essential health coverage or they could face a penalty which became effective for certain businesses for this tax year.  The number of employees that a business employs is a critical calculation and includes consideration of both full-time employees (FTE) and full-time equivalents.  Businesses with fewer than 50 workers are exempt from the ESR provision.  However, employers with between 50 and 99 FTE’s will be liable for the ESR in 2016 and employers with at least 100 FTE’s are liable for the ESR in tax year 2015.  Penalties add up quickly, which is why many businesses are looking for guidance.

The best tip you can provide your clients is to put the right technology in place.  Workforce Go! HRMS can be seamlessly connected between your Intacct® accounting solution and Ameriflex Workforce Management Solution to support ACA reporting efforts.  You can manage FTE data, employee and benefits information, and healthcare coverage for all of your employees; as well as generate Forms 1094-C and 1095-C.  Contact BTerrell Group for more information about streamlining ACA compliance efforts with Workforce Go! HRMS. 

By BTerrell Group, an Intacct Premier Partner and Sage ERP Partner

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