Affordable Care Act Review

Affordable Care Act Review

Category Archives: Independent Contractors

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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

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

FLSA Guidance Highlights Expansive ACA Retaliation Exposure

Posted in Affordable Care Act, Government Employers, Independent Contractors, Private Employers
On July 15, 2015, DOL’s Wage & Hour Division issued Administrator’s Interpretation No. 2015-01, titled, “ The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors.” Nothing new there, right? All well-counseled employers know that the DOL takes an especially dim view… 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

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

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

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

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

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

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

ACA Regulations Expected in December 2013

Posted in Affordable Care Act, Business Organizations, Coverage Mandates, Employee Leasing, Independent Contractors, Taxes
Twice annually, we study the updated federal regulatory agenda and tell you about important ACA rules that the DOL, HHS and IRS plan to publish soon. It’s that time again. December should be a busy blogging month.  These final rules are scheduled for release then: RIN# Agency Subject 1210-AB56 DOL Maximum 90-day waiting period 0938-AR77… Continue Reading

ACA Individual Penalties: Many Will Pay More Than $95

Posted in Affordable Care Act, Coverage Mandates, Exchanges, Independent Contractors, Uncategorized
With January 1, 2014 getting closer every day, and the federal Marketplace still not working, people are faced with big decisions about their health care for 2014.  We want to help.  We thought it would be a good time to explain exactly how the individual penalty works. How to Calculate the Penalty It’s really hard… Continue Reading

The Internal Revenue Service Hasn’t Delayed Payroll Tax Enforcement.

Posted in Affordable Care Act, Coverage Mandates, Government Employers, Independent Contractors, Private Employers, Taxes
In a prior post, we blogged about the risks associated with failing to count employees misclassified as independent contractors as “employees” for ACA purposes.  And, we have examined the purported 2014 employer mandate enforcement waiver.  Some employers appear to have confused those issues, believing that the enforcement waiver applies to issues of employee misclassification generally.  It does… Continue Reading

ACA Rulemaking Status Report

Posted in Affordable Care Act, Coverage Mandates, Employee Leasing, Exchanges, Grandfathered Status, Independent Contractors, Insurers and Brokers, Taxes
Periodically, federal government agencies must disclose the status of all major rulemaking projects, forecasting the dates of expected rule publications.  The Spring 2013 version of this “Semi-annual Regulatory Agenda” was released July 23, 2013.   Here is the reported status of eleven major ACA rulemaking projects. The individual mandate final rule is expected to be published… Continue Reading

Must my School Comply with the Affordable Care Act?

Posted in Affordable Care Act, Employee Leasing, Government Employers, Independent Contractors
The Affordable Care Act (“ACA”) requires applicable large employers (“ALEs’”) (50 or more full-time employees or equivalents) to offer coverage to their full-time employees (“FTs”) by January 1, 2014.  For some school systems, full-time status is obvious.  For others, full-time status determinations may not be as easy.  FTs are those that work 30 or more… Continue Reading

IRS Will Be Scrutinizing Independent Contractor Arrangements

Posted in Affordable Care Act, Coverage Mandates, Independent Contractors, Private Employers
No employer’s Affordable Care Act (ACA) strategy is complete without a well-conceived plan for distinguishing between employees and independent contractors.  Generally speaking, employees count for purposes of the ACA, and independent contractors do not. The proper classification of a worker is far more consequential than the proper pronunciation of “tomato,” and the government is not… Continue Reading