New Health Insurance Information and Regulations

Wednesday, December 30, 2015
Beginning in January 2016, there will be new health insurance regulations and information that the IRS will start requiring. This includes that employers that provide minimum essential coverage need to report information to the IRS about that individual’s health coverage in the previous year, meaning in 2015. The taxpayer will need to verify this information from the 1095-B Form for Health Coverage Information or from the 1095-C Form for Health Insurance Offer and Coverage once they are ready to file their tax returns. The information that will need to be verified is the amount of months they received health coverage.  The statements that the IRS receives will be used to verify how long the taxpayer received essential health coverage.
If an employer offers health plans for those who are self-insured, they may need to include additional reporting requirements for the employees that are self-insured.  If there is a large employer, they will need to complete the 1094-C Form and 1095-C Form in order to provide the IRS with information pertaining to employees with self-insured health coverage. However, if an employer does not qualify as a large employer, they do not need to file 1094-C and 1095-C Forms; instead they need to file the 1094-B and 1095-B Forms so that they can provide the IRS with relevant information about employees with self-insured health coverage. As a reminder, these 2015 reporting forms are due February 29, 2016 if filing directly with the IRS or March 31, 2016 for e-filing. The forms need to have the taxpayer’s name, identification numbers and how long (number of months) each of the employees were enrolled and received benefits.

For employers with less than fifty full-time equivalent (FTE) employees, there will be different tax provisions than for larger companies. One such consideration is that over 95% of employers with less than fifty employees many not be subject to the employer shared responsibility provision, so it is extremely important to accurately note the number of employees. In addition, for those employers with fifty or less employees, they can get employees health insurance coverage through the Small Business Health Exchange.  For employers with 25 or less FTE earning below $50,000, they could be entitled to the small business healthcare tax credit.  Every employer needs to file tax information returns each year for the employees that they cover, which are due when tax returns are filed in 2016.

Do you have questions about how the health care law or employer health care coverage can affect your 2016 tax return? Or are you concerned about the legal matters regarding health law that is associated with your tax return?  Are you looking to hire a tax law professional?  Contact the Strategic Tax Lawyers, LLP who have years of tax-related experience and results that are successful.  For a free consultation call the Strategic Tax Lawyers at (800) 669-4775.