Affordable Care Act Review

Affordable Care Act Review

Category Archives: Employee Leasing

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2016 Draft Forms 1094-C and 1095-C and Instructions: What’s New, Page-by-Page

Posted in Affordable Care Act, Employee Leasing, Government Employers, Independent Contractors, Insurers and Brokers, Private Employers, Taxes
In the ACA realm, change is the only constant, so don’t take this to the bank.  We’re telling you what we see for the first time, on a first reading of the draft 2016 Forms and Instructions that the IRS has released since July 7.  “Applicable Large Employers,” their contractors and consultants will use these… Continue Reading

ACA Retaliation: Let Us Tell You A Little Story about A Man Named Jed

Posted in Affordable Care Act, Employee Leasing, Government Employers, Independent Contractors, Private Employers
Jed, employed by Drysdale LLC, a janitorial contractor, recently began working nights at the Commerce Bank, supervised by the Bank’s Chief of Security.  Jed’s family had health insurance until his wife lost her job early this year.  Drysdale didn’t offer insurance, so Jed bought a policy through Healthcare.gov.  With the federal subsidy, his premium is… Continue Reading

How (and How Not) to Read This Blog

Posted in Affordable Care Act, Business Organizations, Community Health Needs Assessments, Coverage Mandates, Employee Leasing, Exchanges, Federal Contractors, Government Employers, Grandfathered Status, Independent Contractors, Insurers and Brokers, Private Employers, Providers - For Profit, Providers - Not-for-Profit, Taxes, Uncategorized
Nearly three years ago, having spent hundreds of hours immersed in ACA minutiae, we anticipated that clients would not react well to fees for services that consisted principally of telling them that they had asked the wrong question. So we decided, against tradition and much conventional wisdom, to sink lots of unpaid partner time into… Continue Reading

ACA Information Return Deadlines Extended

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Government Employers, Insurers and Brokers, Private Employers, Taxes
On December 28, 2015, the IRS released its Notice 2016-4, granting much needed time for employers and their filing services to catch up to Affordable Care Act Information Return (AIR) Program developments. Here (nearly verbatim) are the extensions: The deadline for furnishing to individuals the 2015 Form 1095-B, Health Coverage, and the 2015 Form 1095-C,… Continue Reading

Coming Down Your Chimney: Market Reform Guidance, Information Reporting Penalty Relief and Cadillac Tax Delay

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Federal Contractors, Government Employers, Independent Contractors, Insurers and Brokers, Private Employers, Taxes
It’s the “silly season” on the Hill and a busy season for ACA regulators. This article gives you brief notes about Notice 2015-87, information reporting relief and the § 4980I delay buried in the omnibus spending bill. IRS Notice 2015-87 first answers questions on the periphery of earlier guidance effectively killing stand-alone HRAs. Most notably, an… Continue Reading

Request for Information about ALE Reporting Status

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Government Employers, Private Employers, Taxes
We work closely with employers (mostly ALEs) and an array of service providers – payroll processors, benefit plan consultants and administrators, software developers and transmitters, employee leasing firms, insurance brokers and insurers. We’re hearing from them and from others pretty consistent impressions of the state of employer readiness to furnish (by February 1, 2016) and to file… Continue Reading

Healthcare.gov Subsidies Trigger Employer Mandate Tax Assessments.

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Exchanges, Independent Contractors, Taxes
This morning, the Supreme Court of the United States, by a 6-3 margin, removed the last legal obstacle to employer mandate tax enforcement. Because the HHS had authority under Code § 36B to subsidize insurance plans bought through Healthcare.gov (according to an IRS rule), those subsidies properly will trigger Code § 4980H employer mandate tax assessments by… Continue Reading

Coverage Offer Reporting: What’s Simple . . . and What’s Not

Posted in Affordable Care Act, Employee Leasing, Government Employers, Private Employers, Taxes
As we gather to gawk at the impending King v. Burwell piñata whacking, here’s a reminder to curb your enthusiasm. Even if your employer mandate dies this month, even if it is not resurrected by legislation or executive action, and even if you provide compliant coverage, most of you will have to report your 2015… Continue Reading

King v. Burwell Forecast: Cloudy with a Chance of Panic

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Exchanges, Government Employers, Insurers and Brokers, Private Employers, Providers - For Profit, Providers - Not-for-Profit, Taxes
This is a compliance blog; we don’t do politics. But we can’t explain compliance consequences of the Supreme Court’s King v. Burwell opinion without acknowledging the political context. Here’s the June calendar of the Supreme Court of the United States.               Opinions are posted online on Monday or Tuesday, typically. As early as… Continue Reading

2014 Forms 1094-B, C and 1095-B, C Good to Go

Posted in Affordable Care Act, Employee Leasing, Government Employers, Private Employers, Taxes
Because the IRS needs data to verify subsidy eligibility and to enforce the individual and employer mandates, the ACA added § § 6055 and 6056 to the Internal Revenue Code, requiring insurers and large employers to report that data to the IRS and to beneficiaries. The IRS published final rules in March 2014 and released early draft… Continue Reading

Who Are Your Form 1095-C Employees?

Posted in Affordable Care Act, Employee Leasing, Government Employers, Independent Contractors, Private Employers
Beginning in 2016, Code § 6056 requires large employers to complete, file with IRS and deliver to employees a Form 1095-C for each full-time employee offered minimum essential coverage for each 2015 coverage month.  So, who are your Form 1095-C employees?  Might they include people not on your payroll? Here’s the relevant IRS rule defining “full-time… Continue Reading

Negotiating Employee Leasing Agreements

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Private Employers, Taxes
Our clients include employee leasing firms and their employer customers. Sometimes, both ask us to explain their ACA exposures related to proposed lease revisions, which we cannot do. Professional ethics rules generally forbid lawyers to work both sides of the same deal. Maybe that explains why so many lawyers enter politics. But we can explain… Continue Reading

Temp-to-Perm Staffing: Still a Solution?

Posted in Affordable Care Act, Business Organizations, Employee Leasing, Independent Contractors, Taxes
“Applicable Large Employers” are exposed, beginning January 1, 2015, to significant new taxes if they fail to offer “minimum essential coverage” to at least 70% of their full-time employees and their dependents.  Employers also must permit full-time employee coverage to become effective within a “90-day” maximum waiting period.  Unlawfully delaying coverage exposes the employer both… Continue Reading

Back to Basics

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Government Employers, Private Employers, Taxes
On the road a lot recently, speaking to large and small rooms of employers, we have seen what we expected to see about now.  As much as their questions, it’s been the look in the eyes of the audience, their body language, indicating that Affordable Care Act compliance worries are back on the front burner.  Maybe busy executives were wise to focus elsewhere since July 2013;… Continue Reading

The MEWA Cloud Hanging Over 2015 Employee Leasing Arrangements

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Private Employers, Taxes
We applauded the IRS decision to credit customer employers, for employer mandate purposes, with leasing company offers of affordable, qualifying coverage to leased employees, as long as the customer employer is surcharged for each employee who takes the coverage offered.  But since then, we have seen no evidence that parties to employee leasing arrangements are… Continue Reading

ACA Review Research

Posted in Affordable Care Act, Business Organizations, carrots, Community Health Needs Assessments, Coverage Mandates, Employee Leasing, Exchanges, Federal Contractors, Government Employers, Grandfathered Status, Independent Contractors, Insurers and Brokers, Private Employers, Providers - For Profit, Providers - Not-for-Profit, Taxes, Uncategorized
Recently, we have received requests to re-post prior articles on the 90-day waiting period, the employer mandate final rules (supplemented here, here, here and here), and our pop quiz for ACA consultants.  As we approach our 100th article, some readers apparently find the scroll-down browsing process tedious.  So do we.  Here are two other ways to find… Continue Reading

Is The Full-Time Employer Mandate Causing Employers to Cut Weekly Work Hours?

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing
Probably not yet, on net, this year, seems to be the correct answer, though temp staffing is trending upward.  Here are three charts that we created from data obtained from the Bureau of Labor Statistics. CHANGE IN % OF PART-TIME WORKERS IN TOTAL WORKFORCE (’11-’14)   Part-time workers’ share of the total work force has fallen in… Continue Reading

ACA Advisor Pop Quiz

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Federal Contractors, Government Employers, Grandfathered Status, Insurers and Brokers, Private Employers, Providers - For Profit, Providers - Not-for-Profit, Taxes
We have been concerned for many months that some of our clients and friends are getting unreliable ACA compliance advice.  This is not a knock on insurance agents, or brokers, or TPA’s or any other class of advisors.  We work with some who are as helpful to our mutual clients as we are to them. … Continue Reading

Part II of IV: How the ACA Employer Mandate Final Rule Treats Leased Workers

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Independent Contractors, Taxes
Long before the ACA was a Senate cloakroom concept, the IRS had a burr under its saddle about employee misclassification, because payroll withholding tax collections vary directly with W-2 employee payrolls.  Employer incentives run in the other direction, including minimum wage, overtime, union organizing, OSHA, benefit plan eligibility and EEO duties owed to one’s own… Continue Reading

The ACA Employer Mandate, As Amended, Part I of IV: Transition Relief

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Taxes
Some federal regulations seem to have been crafted to say nothing, at great length.  The IRS ACA Employer Shared Responsibility Cost final rule, released February 10, 2014, is at the other end of the spectrum – 227 pages of important, tightly-packed, complex communication.  This is Part I of a four-part series summarizing some major topics… Continue Reading

IRS Issues Final Employer Mandate Rules

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Independent Contractors, Taxes
The long-awaited, unofficial copy runs 227 pages, so we will study tonight (February 10) and explain tomorrow.  Here are the bullet points from this afternoon’s IRS press release. Small Businesses with fewer than 50 employees: (about 96% of all employers): Under the Affordable Care Act, companies that have fewer than 50 employees are not required to provide coverage or… Continue Reading

The ACA May Birth a New Kind of Union

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Private Employers, Taxes
Several union organizers are among the most entrepreneurial people I have known. (See also personal injury lawyers, shrimpers and commercial theology operators.)  Somewhere out there, some union organizer sees an opportunity to build a new business model on the ACA employer mandate.  It looks like this. Probably, to some significant extent, employers with low-wage workforces will, during… Continue Reading

Overdue ACA Guidance Among Early 2014 IRS Priorities

Posted in Affordable Care Act, Community Health Needs Assessments, Coverage Mandates, Employee Leasing, Exchanges, Independent Contractors, Taxes
On January 29, 2014, the IRS updated its list of priority projects for the period ending July 1, 2014.  Though expressly disclaiming any promise to compete any listed project by any certain date, the IRS included among its unfinished priorities these much-needed ACA rules and guidance documents. Regulations amending §1.419A-2T relating to collectively-bargained welfare benefit… Continue Reading