Matt Hollister No Comments

ACA Reporting Extension

Yesterday the IRS announced an extension in the deadline for the 1095 and 1094 forms.
For Applicable Large Employers (ALEs), who need to provide the 1095-C in 2015, this change extends the deadline two months from February 1st to March 31st, 2016.
In addition, ALEs will have an extra three months to file the 1094-C, or until May 31st (June 30th if filing electronically).
The IRS Bulletin also confirms that penalties will apply if ALEs do not file by the new deadlines and that since these new deadlines are more generous than previous extensions offered, that any ongoing requests for an extension will not be formally granted.
Lastly, there is some guidance for individuals who file their taxes before receiving their 1095 forms.
Sincerely,
Matt Hollister, L.I.A., M.P.H.

Matt Hollister No Comments

Cadillac Plan Tax Amended

Last Friday President Obama signed H.R.2029 – Consolidated Appropriations Act, 2016, which made a couple of key changes to the “Cadillac Plan Tax”, an excise tax on high cost employer-sponsored health plans.
First, the implementation of the tax has been delayed two years from 2018 to 2020. Second, the tax payment will be a deductible business expense – initially the excise tax was not going to be a deductible expense and therefore more costly for employers.
The Cadillac Tax is an excise tax on the cost of “high cost plans” which are plans that have an premium that exceeds a certain threshold. Currently, the amounts for high-cost plans are $10,200 for individual coverage, and $27,500 for family coverage. These amounts are indexed for inflation and will change.
Opponents of the Cadillac Tax seek a repeal of the law that will cause further pressure on employers who already face a high cost of providing health insurance. Included in the “premium” calculation for Cadillac plans are benefits such as Health FSAs, HRAs, Health Savings Accounts, most wellness plans and of course fully insured and self insured health plans.
Matt Hollister, L.I.A., M.P.H.