As you may be aware, deadlines and guidelines surrounding the ACA continue to be in flux. Moss Adams will continue to provide insight on and analysis of health care reform legislation and its potential impact on your organization, but for up-to-the-minute news about the ACA, we recommend Healthcare.gov or the Kaiser Family Foundation.
The IRS has issued proposed regulations for the health insurance premium tax credit created by the Affordable Care Act (ACA). This credit helps eligible taxpayers purchase individual coverage through a health insurance exchange. The guidance is significant to businesses because, under the ACA’s shared responsibility provisions, also known as “play or pay,” beginning in 2014 certain employers may be subject to penalties if just one employee receives the credit.
The regulations provide additional guidance to employers on how to determine whether their employer-sponsored plans satisfy the requirements to disqualify employees for the credit, which, in turn, will allow them to avoid play-or-pay penalties. The IRS earlier released regulations addressing the affordability issue; the new regulations lay down the rules for minimum value.
Though the regulations are proposed, taxpayers can consider them effective for periods starting after December 31, 2013, and may apply them to taxable years ending before January 1, 2015. When the rules are issued in final form, if there are any changes, taxpayers will need to comply with the changes only on a prospective basis and won’t be penalized for having relied on these proposed regulations.
Via: Moss-Adams LLPContinue Reading.....
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