Article courtesy of Valiant Solutions
President & CEO Todd Bellistri of August Benefits shares the latest update on the Tax Cuts & Jobs Act, signed by President Trump on December 22, 2017.
The signing of the act has repealed the Individual Mandate, which is the Affordable Care Act (ACA) requirement that individuals maintain health insurance coverage, or face a penalty. Todd Bellistri outlines when the repeal takes place and what it means for employer mandate.
When does the repeal of the individual mandate take effect?
The repeal of the individual mandate is effective January 1, 2019. Thus, individuals continue to be responsible for maintaining minimum essential health coverage through the 2018 year or risk facing a penalty.
What does this mean for employers?
The ACA Employer Mandate, which requires employers with 50 or more full-time equivalent employees to offer their full-time workers qualifying health coverage – or face stiff penalties, remains in effect.
Additionally, employers continue to have Reporting Requirements – with 1095 forms required to be distributed to individuals each tax year, sorry this does not go away.
What does it mean for the employee?
The penalty has been reduced to $0, there is no penalty anymore for not having insurance.
What are risks for employers who disregard the employer mandate or reporting requirements?
The IRS is now enforcing the employer mandate, and has begun to send penalty letters to employers for non-compliance for the 2015 filing year (letters for the 2016 filing year are soon to follow).
For more information regarding the new tax bill and the repeal of the individual mandate, contact Anabela Sarti and she will connect you with a specialist: Anabela.Sarti@valiant.com or 516-622-3710
