Healthcare Law

Affordable Care Act and tax forms – what you need to know as a St. Petersburg Employer

Filing taxes is growing more cumbersome. As with other cities, the Affordable Care Act demands St. Petersburg and Tampa employers and health insurers to provide the IRS with information about individual’s income the health insurance coverage. The IRS has created three new tax forms to prove you have health insurance and avoid any kind of tax penalties for not carrying insurance. You also need these forms in an effort to claim any tax credits.
The 1095-A form is used for those who got their insurance from a government marketplace or one of the Exchanges. This form provides information on the monthly premium you’ve paid. It also details the monthly advance payment for the premium tax credit. This credit has helped lower the out of pocket cost for the plan. The advanced premium credit was calculated based on your approximate yearly income when you enrolled in the plan, however, the form will ensure that you’re receiving the actual amount you’re allowed based on your true income for the tax year.
The 1095-B form reports to the IRS the months that you and any dependents had coverage through a qualifying health plan. Your insurance provider should send this form to the IRS on your behalf. This form will ensure you can avoid the penalty for not having a qualified health plan. This penalty is up to $315 for single individuals and can get up to nearly $1,000 per family.
The 1095-C form is filed for those who have coverage through any employer-sponsored health plan. The employee contribution is deemed affordable if it’s less then 9.5 percent of the household’s annual income. If you paid more than this or if you have a lower income, you might receive the premium tax credit. Companies with at least 50 full-time employees are responsible for taking care of these forms and sending them to the IRS on your behalf.

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on payment and employee benefit issues. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.

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