Finance & Enjoyment Blog

Denver CPA: An Update on the Affordable Care Act

The Affordable Care Act (ACA) has been in full swing since early 2014; however, that doesn’t mean that there may be some changes that may affect your small business. Employers with fewer than 100 employees now have until 2016 to provide health insurance per a delay of the health law. Larger businesses will have to cover at least 70% of the workforce starting in 2015 the IRS stated in a rule in early February.

This deal was made under pressure from business groups since the Affordable Care Act was implemented earlier this year. Because it was such a large undertaking for businesses, it took these companies major adjustments, transitions and considerations to make sure that these new processes and laws are being implemented.

That rule also stated that employers won’t have to cover seasonal works employed less than six months. Those companies approaching the 50 employee threshold may determine they do not want to hire as they will be subject to ACA upon hiring that 50th employee. Under the Affordable Care Act, an assessable payment or employer shared responsibility payment hits employers with 50 or more full-time employees. Remember: no matter how you label an employee, the substance of the work relationship will control. The IRS says you must evaluate factors and assess whether you are controlling the method, manner and means of the work.

On a side note, after a difficult few months of getting people to sign up for ACA through exchanges, about 3 million people signed up for private health plans using the new exchanges as of January 24. And an estimated 1.7 million more people have gained coverage from Medicaid through December. This trend shows that people are starting to understand the new law and the individual and business implications that come along with it.

How to use this Information Taxes are just around the corner. Do you have questions regarding all the ACA taxes that started in 2014? Contact KKB, your Tax Accountant Denver for all of your practice’s tax needs. We’ll help you navigate the new rules and regulations of the Affordable Care Act. Contact us today at 303-815-1100 or visit our website at www.kkb-cpa.com. We’re dedicated to helping our clients succeed, and we’re looking forward to showing you how we can help.

How is your practice adjusting to the new health care rule?


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