OVERVIEW On Dec. 20, 2019, President Trump signed into law a spending bill that prevents a government shutdown and repeals the following three taxes and fees under the Affordable Care Act (ACA): The Cadillac tax on high-cost group health coverage, beginning in 2020; The medical devices excise tax, beginning in 2020; and The health insurance … Continue reading CADILLAC TAX AND OTHER KEY ACA TAXES REPEALED
OVERVIEW Affordable Care Act (ACA) reporting under Section 6055 and Section 6056 for the 2019 calendar year is due in early 2020. Specifically, reporting entities must: File returns with the IRS by 28, 2020 (or March 31, 2020, if filing electronically); and Furnish statements to individuals by March 2, 2020. Originally, individual statements were due … Continue reading UPCOMING ACA REPORTING DEADLINES
Beginning in 2020, employers of all sizes may implement a new HRA design – an individual coverage HRA (ICHRA) – to reimburse their eligible employees for insurance policies purchased in the individual market or Medicare premiums. Final rules released by the Departments of Labor, Health and Human Services (HHS) and the Treasury (Departments) permit employers … Continue reading NEW ICHRAs – Employers Paying Individual Insurance Premiums
The IRS announced an increase to flexible spending account (FSA) contribution limits for the 2020 plan year. Individuals can contribute $2,750 in 2020, up $50 from the previous year. Since this announcement came so late in the year, some employers may not use the updated figures in their benefits limits—as doing so would require an … Continue reading FSA Contribution and Other Benefits Limits Rise for 2020
OVERVIEW On July 17, 2019, the IRS released Notice 2019-45 to add care for a range of chronic conditions to the list of preventive care benefits that can be provided by a high deductible health plan (HDHP) without a deductible. Individuals who are covered by an HDHP generally may establish and make contributions to a … Continue reading IRS Expands Preventive Care for HDHPs to Include Chronic Conditions
The IRS released draft 2018 forms for Affordable Care Act (ACA) reporting under Internal Revenue Code (Code) Sections 6055 and 6056. Draft instructions for 2018 have not yet been released.
The IRS recently released the 2018 version of Publication 15-B—Employer’s Tax Guide to Fringe Benefits, which contains information for employers on the tax treatment of fringe benefits. The 2018 version is significant because it incorporates the changes made by the new tax law—the Tax Cuts and Jobs Act—to the following fringe benefits: Qualified transportation plans … Continue reading IRS Updates Employer Guide for 2018 Tax Changes to Fringe Benefits