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Business Tax Lawyers - Small Business Health Care and the Health Care Law

Monday, April 6, 2015
We are the Strategic Tax Lawyers, professional business tax lawyers who want to inform small business employers about the changes to the business health care tax credit, which is part of the Affordable Care Act (ACA). This provision will provide tax credits to small employers that are eligible if they provide health insurance benefits to their employees.  Since 2014, there were changes that could affect your place of employment.

One of the changes is the increase of the credit percentage of premiums to 50% from 35% and 35% from 25% for employers that are tax-exempt.  Also, small businesses are allowed to claim the small business health care tax credit only for two uninterrupted years starting 2014.   The credit will phased out if earnings are equal to $25,400 and will be completely phased out if earnings are more than $50,800. In general, the healthcare marketplace is available to small employers for them to purchase a Qualified Health Plan which could then allow them to claim the credit.  Just a note, small businesses are able to claim the credit for previous years by amending the tax returns, from 2010-2013, in order to claim the tax credit. 

Because of the Affordable Care Act (ACA) everyone filing a 2015 tax return will be asked if they had health insurance in 2014.  As part of the ACA, the federal government is requiring that all individuals have minimum health care coverage. You will be required to report essential coverage or claim a coverage exemption.  All that will be required is a simple check in a box. If you are do not need to file a tax return you will still need to report your health care coverage and use Form 8965 to assess whether you qualify for an exemption.  This will also be used to assess your penalty if you did not have any health coverage.

For the first time, the IRS will start charging fines for uninsured taxpayers.  You are required to state if you purchased health insurance privately, received it from your employer or from a health insurance exchanges.  If you don’t report, you will face a penalty.  

If you have health care coverage, you will be charged penalties.  IF you received health care coverage from one of the health insurance exchanges, you will need to fill out Form 1095a and establish if you are eligible for a premium tax credit.

As professional business tax lawyers, we understand that there is a lot of information which complicates matters. There is online support offered on the IRS website to assist with ACA questions.  The IRS is expecting an increase in questions and phone calls due to this matter.

The Strategic Tax Lawyers, LLP are professional business tax lawyers with years of experience in tax-related and IRS issues.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.