With headlines trending on the repeal of the Affordable Care Act (ACA) a lot of employers are wondering....Will I still have to report employee health coverage to IRS next year? In short the answer is yes and employers will more than likely have to continue reporting for quite a while.
The new bill called the The American Health Care Act that was meant to replace Obama’s ACA law – doesn’t replace the ACA in its entirety. The basis of the credits and subsidies that the ACA introduced would remain until year 2020. As long as the federal government uses whether the employer made a qualifying offer as a factor for credit eligibility, employers will need to continue to provide this coverage data.
November 3, 2020 will be the next presidential election year and who knows if we will see a different party in office. With the turmoil around the Trump administration and lower than average approval rating many believe that we will not even see a second term.
In the year 2020 if Trump is indeed re-elected and the original ACA subsidy policy expires, The American Health Care Act would introduce a “new” system that would give individuals a refundable tax credit. This credit would be awarded IF they were not offered employer sponsored coverage. Same concept with a new label and reporting would still be necessary to implement this system of dispensing credits accurately. The one main difference between the two is that ACA tax credits are was based on income level whereas the GOP’s proposed credit will be based on age. No one can say exactly how these plans will unfold but, one thing that is probable is the continued reporting requirements.
Tab Service Company is a service bureau company that offers ACA compliance services for section 6055 reporting. Established in 1960 the company has provided organizations and businesses across the nation with Business Process Outsourcing solutions. We approach the section 6056 reporting and compliance from a holistic standpoint to include: tax consulting, data collection, electronic presentment and print/mailing/electronic filing. Call today to speak to a representative (312) 527-4306