Schaffner, Knight, Minnaugh & Company, P.C.

Make plans now for 2015 taxes

Jun 16, 2015 | Posted in News and Events

Planning is more important than ever in 2015, as some small business tax benefits have expired and a $100 per-day, per employee tax will be assessed starting July 1 on health care reimbursement plans (HRAs) that do not comply with the Patient Protection and Affordable Care Act of 2010.

We encourage you to contact us at your earliest convenience to discuss how the current tax environment may affect your unique situation and develop a strategy that makes sense for your business. The good news is that there is still time to make adjustments now to minimize your tax outlay, avoid last-minute hassles, and ensure compliance with tax and health care laws.

Steps to consider taking now:

Confirm Your HRA Complies with the Law - Avoid a $100 Per Day Penalty

If your company has fewer than 50 full-time employees and you have a healthcare arrangement that reimburses employees for their medical insurance premiums, the Internal Revenue Service has provided some significant relief from a large excise tax that applies to health plans that don’t comply with Affordable Care Act provisions. However, it’s important to be aware that the relief expires June 30. After that date, if you continue to use a health reimbursement arrangement, either pre-tax or after-tax, you could be subject to a penalty of $100 per day, per employee.

If you believe you could be subject to the excise tax or if you have questions about IRS relief for S corporations, contact us today for advice that can help you avoid unnecessary penalties.

Confirm Your Obligations under the Affordable Care Act

Reporting of employees’ coverage for 2015 will be due next year for any employer with 50 or more full-time equivalent employees, which is slightly different than full-time employees as it generally includes seasonal workers. Employers should be aware that a number of other provisions will go into effect, such as the 90-day limit on the period before a new hire can become eligible for employer-provided health coverage. Also, all employers who provide self-insured health coverage must file an annual information return to report certain information for individuals they cover. Be sure to consult with us on what the ACA may mean to your business.

Schaffner, Knight, Minnaugh & Company, P.C. is here to help you with World Class Service. Call us today at 814-454-1997