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Healthcare Reporting for Small Businesses

January is a hectic time for small businesses to furnish all sorts of tax forms to employees, vendors and subcontractors.  Hopefully, the ACA does not add to this reporting burden, but let's make sure.

The Affordable Care Act changed many things for 2015 and 2016 and we are finding a lot of confusion among small business owners. This Tax Alert will help to summarize what you may do for 2015 and the future, and what options are available.
Reporting Requirements - Form 1095-C

If you issue less than 50 W-2's to employees there are no health care reporting requirements applicable to your company.  If you issue 50 or more W-2's please call us to discuss and determine if the applicable large employer requirements apply to you.
Health Care Fringe Benefit Options for 2015 and 2016

If you have less than 50 employees, you have the following 4 options available to you. Anything that you do for health care that is not on this list of 4 options may cause you to incur a $100 per employee, per day penalty.
Option 1
Do nothing-provide no health care fringe benefits of any type. Because a small business is not required to provide health insurance, this option is available if you wish to keep it simple, yet avoid penalties and problems.
Option 2
For those small businesses that wish to provide health insurance, make sure it is a qualified policy meeting the minimal essential benefits requirements. Also make sure that it is part of a written, non-discriminatory plan.  Your insurance consultant should be able to help with this.
Option 3
If you want to help one or more employees, but not provide health insurance to everyone, you may do any type of wage bonus to help them out as long as you do not require them to use the bonus for health care benefits. They are allowed to use it for health care, but you cannot require it.
Option 4
There are 5 "excepted benefits" that a small business may provide to employees. Talk to us at the office about these, but examples include dental and vision plans, long term care insurance and more as well as special rules if you only have 1 employee.

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Loveland, Colorado 80537

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Estes Park, Colorado 80517


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Katy, Texas 77450

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