1. SATHE AFFORDABLE CARE ACT SMALL BUSINESS MANAGEMENT TIPS

2. IN THIS WEBINAR… Recent ACA changes Small Business Issues o IRS Employer Payment Plan Prohibition o New IRS Employee Forms Midsize and Large Business Issues o Employer Mandate Compliance 2016 – 2017 Calendar Questions

3. RECENT OBAMACARE CHANGES Legislative changes o “Small business insurance” definition (2016 – state decision) o Cadillac tax two-year delay (until 2020) o Health insurance tax one-year delay (calendar year 2017) o Medical device tax two-year delay (calendar years 2016-2017) Regulatory changes o IRS Prohibition on Employer Payment Plans (July 2015) o Employer mandate reporting deadlines delayed (Dec 2015) Important small business tax note o Small business health insurance tax credit expiration (if claimed in calendar years 2014-2015)

4. IRS REIMBURSEMENT PROHIBITION Prohibition from reimbursing or paying directly for employees’ for individual market (nongroup) health insurance o “Standalone” or “non-integrated” Health Reimbursement Arrangement (HRA); Employer Payment Plan o 16% utilize practice; 20% considering practice Created in IRS Guidance (Notice 2013-54) o Enforcement began July 1, 2015 o Self-reporting or audit o Includes 2% shareholders of S-Corporations o Egregious penalties - $36,500 per employee, per year Exceptions o Single employee o HRA integrated with spouse’s group health plan Small Business Healthcare Relief Act (HR 2911/S 1697)

5. HEALTHCARE TAX SEASON – NEW EMPLOYEE FORMS Employees receive one 1095 Form Employees keep 1095 Form for records o Use 1095 Form for filling out individual tax returns o Check “Minimum Essential Coverage” box on Line 61 of Form 8962 FormCoverage TypeFrom? 1095-AExchange Individual MarketExchange 1095-B Small Employer or Non- Exchange Individual Market Insurer, Self-Insured Employer, Medicare/Medicaid 1095-CLarge EmployerEmployer

6. HEALTHCARE TAX SEASON – NEW FORMS TO IRS Certain employers send 1094 Forms to IRS Purpose of Form 1094 o Enforce employer mandate o Verify whether employees comply with individual mandate o Verify whether employees are eligible for Exchange taxpayer subsidies FormCoverage TypeFrom? 1094-B Small, Fully-Insured Employer OR Non- Offering EmployerInsurer 1094-BSmall, Self-Insured EmployerEmployer 1094-CLarge, Fully-Insured EmployerEmployer Combined 1094-CLarge, Self-Insured EmployerEmployer

7. HEALTHCARE TAX SEASON – EMPLOYER MANDATE COMPLIANCE Both Midsize (50-99 FTEs) and Large (100+ FTEs) businesses must report for 2015 tax year o Midsize businesses check Box C, Line 22 for transition relief Compliance deadlines delayed in December 2015 tax year o Form 1095-C to employees by January 31 March 31 o Form 1094-C to IRS by February 29 May 31 Month-by-month basis reporting of affordable coverage for current and previous employees o Affordable – employee contribution to self-only portion of the premium <9.5% of employees’ Box 1 on W-2 Form Employers will be contacted in late 2016 or early 2017 by IRS in correspondence for irregularities and eventual penalty assessment

8. ACA CALENDAR (2016/2017) March 31, 2016 – EM Form 1095 due to employees (2015) May 31, 2016 – EM Form 1094 due to IRS (2015) Summer 2016 – Premium review season (2017) o Temporary “buffer” programs end November 1, 2016 – Open enrollment begins (2017) December 31, 2016 – Congress must pass Medicare bill January 31, 2017 – Open enrollment ends (2017) January 31, 2017 – EM Form 1095 due to employees (2016) February 28, 2017 – EM Form 1094 due to IRS (2016)

9. QUESTIONS Kevin.Kuhlman@nfib.org