Affordable Care Act Reporting Requirements

When is reporting required? Starting in 2016, any employer identified as an “applicable large employer” under the Affordable Care Act (defined as an employer with fifty or more full-time or full-time equivalent employees) will be required to submit forms to the Internal Revenue Service. These forms outline the insurance coverage available to employees and will allow the IRS to determine if the employer owes a payment pursuant to the employer shared responsibility provisions of the Affordable Care Act. These reporting requirements were optional in 2015 (for insurance coverage offered in 2014), but are mandatory in 2016 (for insurance coverage offered in 2015).

Affordable Care Act Cadillac Tax

What is the Cadillac Tax? The Affordable Care Act contains a provision that has become known as the “Cadillac Tax” and establishes a tax on health insurance plans with higher premiums. This provision was put in place to help control the increasing costs of health insurance premiums that are generated from benefit-rich health insurance plans. The concern with such plans is that employers are providing benefit-rich plans, which result in higher premiums that are not taxable, instead of providing a higher income and a plan that does not offer as many benefits. Therefore, the employee is receiving the same total benefit, but less tax is being generated from that benefit (because more of the benefit is from the non-taxable premiums).

Holiday Party Pitfalls

As the year winds down, one thing most employees can count on is that their employer-sponsored holiday party will be coming up. Many employers believe such parties are an excellent tool to increase morale and provide a much-needed break in the workday to their employees. These holiday parties, however, raise employment issues that all employers and employees should consider prior to kicking off the holiday celebrations. Here are a couple points everyone should keep in mind when celebrating with their co-workers.