ACA small employer tax credit regulations proposed
The IRS released proposed regulations in August for calculating the small employer tax credit under Section 45R, which may affect certain tax exempt organizations with 25 or fewer full-time equivalent employees. Eligibility requirements for the credit, methodology for determining the amount deductible, and guidance for claiming the credit in annual tax filings are among the items detailed in the updated proposal. Public comments and requests to hold a public hearing are due to the IRS by November 25. Meanwhile, the IRS has launched a full-scale website in advance of ACA implementation, provisions of which go into effect October 1, to serve as a resource for individual taxpayers and employers.
Health Care Law Implementation Webinar: July 10, 2013
Washington Council Ernst & Young's Heather Meade, a health law and policy expert, provided participants a review of the implications for nonprofit employers of the ACA, which will go into effect as soon as Oct. 1, 2013. Heather briefed the webinar's participants on the new reporting requirements for employers, how to participate in healthcare exchange programs, and the level of coverage required by different types of organizations. During a highly interactive discussion, Heather responded to participants' questions regarding eligibility and shared plans, and offered a deeper look at how smaller organizations will be affected by the law.
Watch the webinar now. (members only) | View the slides
Portion of health care implementation delayed
The White House announced July 2, 2013 its plan to postpone until 2015 the portion of the ACA requiring employers to provide health insurance to its employees and certain reporting requirements.
Small Employer Credit
Nonprofit Employer Health Insurance Coverage
final rule on the definition of essential health benefits (EHBs), the determination of actuarial value in the individual and small group markets, and the minimum value (MV) standard for large employers. The final rule implements a requirement in the ACA that the plans cover essential health benefits (EHBs) for 10 categories of care, including basic services such as hospitalization and emergency care, as well as mental health and maternity care. In addition, it has posted a MV standard calculator for employers to determine whether their offered coverage meets minimum requirements to avoid penalty excise taxes for unaffordable coverage.
Shared Responsibility Provisions
The Internal Revenue Service (IRS) has proposed long-awaited regulations (REG-138006-12) on the shared responsibility provisions under the ACA. New tax code Section 4980H requires employers with at least 50 full-time and/or full-time equivalent employees to offer affordable health care coverage to provide a minimum level of coverage, or pay a penalty. An employee is considered full-time if he or she works at least 30 hours per week, or 130 hours in a calendar month.
Grandfathered plans are allowed to make routine changes to their coverage structures, which includes changing insurers for group health coverage, so long as the same level of coverage is maintained. Any of the following plan changes will result in an immediate and permanent loss of grandfathered status:
Implementation timeline (PDF) - Key effective dates for health care reforms
Department of Health and Human Services (HHS) guidance - Implementation resources for individuals / employers
Department of Labor (DOL) guidance - Regulatory information for employers