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New Law Affects Form 5500 Filings, Employer Mandate & HSAs

New Law Affects Form 5500 Filings, Employer Mandate & HSAs

August 17, 2015

On July 31, 2015, President Obama signed into law H.R. 3236, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.”

The new law includes the following tax provisions:
• With respect to the employer mandate, veterans enrolled in a health plan under the VA or TRICARE would be exempt from being counted in the 50 full-time employee threshold.
This change is effective as of January 1, 2014.
• Eligible veterans are not disqualified from contributing to a Health Savings Account (“HSA”), as a result of receiving medical care under the VA for a service related disability. In the past such coverage would have made them ineligible to contribute to an HSA.
This change is effective January 2016.
• The maximum extension for the returns of employee benefit plans filing Form 5500 shall be an automatic three and one-half month period ending on November 15 for calendar year plans. It had been an automatic two and one-half extension in the past.
This change is effective for taxable years beginning after December 31, 2015.

Click on the link below for a copy of the new law:

Supreme Court Allows Nationwide Healthcare Subsidies

Supreme Court Allows Nationwide Healthcare Subsidies

New York Times


WASHINGTON – The Supreme Court ruled on Thursday that President Obama’s health care law may provide nationwide tax subsidies to help poor and middle-class people buy health insurance.


Chief Justice John G. Roberts Jr. wrote the majority opinion in the 6-to-3 decision. The court’s three most conservative members – Justices Antonin Scalia, Clarence Thomas and Samuel A. Alito Jr. – dissented.


The case concerned a central part of the Affordable Care Act, Mr. Obama’s signature legislative achievement. The law created marketplaces, known as exchanges, to allow people who lack insurance to shop for individual health plans.


Some states set up their own exchanges, but about three dozen allowed the federal government to step in to run them. Across the nation, about 85 percent of customers using the exchanges qualify for subsidies to help pay for coverage, based on their income.


The question in the case, King v. Burwell, No. 14-114, was what to make of a phrase in the law that seems to say the subsidies are available only to people buying insurance on “an exchange established by the state.”


For a copy of the decision, click on the link below:

Health Reform Questions – Full-Time Employee Determination & Reporting

Health Reform Questions – Full-Time Employee Determination & Reporting

Question:  My client has under 100 full-time and full-time equivalent employees for 2015.  It meets all of the requirements for the transitional relief and does not have to comply with the employer mandate until its renewal on October 1, 2016. It employs a number of variable hour employees.

 Does it have to determine which of these variable hour employees are full time for any purpose for 2015?


IRS Issues Draft Instructions for Forms 1094-C & 1095-C for 2015

IRS Issues Draft Instructions for Forms 1094-C & 1095-C for 2015

August 9, 2015


On August 6, 2015, IRS released draft instructions for Forms 1094-C and 1095-C for 2015. The following is an overview of important provisions to consider in the completion of the forms:

  1. Who Must File:

If an employer is offering health coverage to employees other than under a self-insured plan, such as through an insured health plan or a multiemployer health plan, the issuer of the insurance or the sponsor of the plan providing the coverage is required to furnish the information about their health coverage to any enrolled employees, and the employer should not complete Form 1095-C, Part III for those employees.