team, including knowledgeable business
advisers (like a Certified Public Accountant and/or a health insurance broker).
Together, these coaching resources can
help you develop and update a solid plan.
Create a Solid, Flexible Plan
It is important to
develop a coaching team,
including knowledgeable
business advisers
(like a Certified Public
Accountant and/or a
health insurance broker).
from knowing employees’ household
incomes and because employers may offer
a range of plans, three“safe harbors”are
permitted by the IRS.
The first“safe harbor”— the “W-2
safe harbor” — says an employee’s contribution to the lowest cost, self-only health
insurance plan cannot exceed 9.5 percent
of that employee’s individual income (Box
1 of Form W-2). The second “safe harbor”
— the “rate of pay safe harbor”— says an
employer may base an employee’s contribution level at or below 9.5 percent of the
self-only premium on the employee’s rate
of pay at the beginning of the coverage
period for an hourly employee. The third
“safe harbor” — the“federal poverty
line safe harbor”— says an employee’s
contribution to the lowest cost, self-only
premium for the year cannot exceed 9.5
percent of the federal poverty line for a
single individual. An employer can utilize
a combination of these three “safe harbors”
if necessary.
Once a “midsize”or “large”business
has established systems to determine their
business’s size and determine whether
coverage is affordable, they can periodically revise changes when plan renewals
come about, and they will be prepared
for annual employer mandate reporting
requirements.
Establishing systems early and monitoring results is necessary because the IRS
will require annual reporting by employers
in order to verify that affordable coverage
was offered to full-time employees.
Despite the one-year reprieve from the
employer mandate offering requirements,
even “midsized”businesses must comply
with the reporting requirements early next
year for the 2015 tax year.
Similar to providing employees with
W-2 forms, employers must provide
employees with 1095-C forms before
Feb. 1, 2016. Emplo 啕́ݥ