On Feb. 10, 2014, the IRS and Treasury issued final regulations on the Employer Shared Responsibility provisions under section 4980H of the Internal Revenue Code. These questions and answers provide helpful information about the guidance.
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These FAQs provide detailed information about completing Form 1094-C and Form 1095-C.
Information reporting under section 6055 is voluntary for calendar year 2014. Reporting is first required in early 2016 for calendar year 2015.
Information reporting under section 6056 is voluntary for calendar year 2014. Reporting is first required in early 2016 with respect to calendar year 2015.
New research trust fund fees are due July 31 from health insurers and the plan sponsors of self-insured plans. The fee is paid annually using Form 720, Quarterly Federal Excise Tax Return. The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select Q2 for the Quarter under Tax Period on the “Business Tax Payment” page).
This FAQ explains the potential penalty an employer that pays for or reimburses employees for individual health insurance premiums could face.
Federal law gives a tax credit to eligible small employers who provide health care coverage to their employees. These questions and answers provide information on the credit for tax years beginning in 2014.
Effective January 1, 2014, individuals and families with incomes up to 400% of the Federal Poverty Level may qualify for advance premium tax credits to help them pay for qualified health insurance purchased through a state or federal marketplace.
The Affordable Care Act increases the minimum threshold to deduct medical expenses for those who itemize their deductions on their federal income tax return.
Effective January 1, 2014, most Americans are required to have health insurance or pay a penalty. This is frequently referred to as the Individual Mandate. The first penalties will be filed when people file their 2014 taxes in early- to mid-2015.
On Nov. 26, 2013, the IRS issued final regulations (TD 9645) implementing the Additional Medicare Tax as added by the Affordable Care Act (ACA). The Additional Medicare Tax applies to wages, railroad retirement (RRTA) compensation, and self-employment income over certain thresholds. Employers are responsible for withholding the tax on wages and RRTA compensation in certain circumstances.
Effective Jan. 1, 2013, individual taxpayers are liable for a 3.8 percent Net Investment Income Tax on the lesser of their net investment income, or the amount by which their modified adjusted gross income exceeds the statutory threshold amount based on their filing status.
This set of questions and answers provides information for employers on reporting the cost of the health insurance coverage, including information on transition relief for 2012, how to report, which coverage to include, and how to determine the cost of the coverage.
As of January 1, 2011, over-the-counter drugs purchased without a prescription are no longer an eligible expense under an FSA, HRA, or HSA.