The Rea Report Fall 2015 | Page 2

Small Business MAKE continued from cover OR FACE (i.e. the status of health insurance coverage for every month that person was employed with you), you can fill out the form internally, if need be. Pick a side – or pay up Due to recent changes, the ACA has left employers of all sizes with two options: 1. provide all full-time employees with affordable, quality insurance coverage or 2. offer no health care at all. It’s “all or nothing” these days – there’s no longer any middle ground, such as providing partial premium reimbursement. No coverage. If you decide not to provide your employees with health insurance, you will be fined $2,000, per employee, per year (with the first 30 free under the standard rules). Partial coverage/premium reimbursement, etc. Remember, this can now put you at risk for high excise taxes … up to $36,500 per employee, per year, for a full year. It is usually far less expensive to offer no coverage, pay the pay-or-play penalty, and then increase general W-2 compensation. The “all or nothing” mandate applies to companies of any size; the “play-orpay” penalty and 1095-C reporting requirements, on the other hand, apply only to those companies with 50 or more employees. In fact, if you don’t pick a side and are found wandering around in this middle ground, you could be heavily penalized, to the tune of $100 per employee, per day. That’s up to $36,500 per employee, These recent changes are sure to shake per year. some things up. It’s better to be proactive and make sure you’re in compliance To avoid risking major penalties, ensure than to risk it and face huge penalties. your reporting is timely and abide by the “all or nothing” mandate. The bottom line So, what’s this going to cost you? Here’s a break-down. Full coverage. Offer employees full health care coverage, and you’ll be responsible for paying your employer share of premiums; no penalty will be assessed under the ACA. 2 If you’d like more information about becoming compliant, visit www.reacpa.com/ACA. And be sure to check out our podcast (Episode 5: Don’t Get Burned By Obamacare) on iTunes, SoundCloud or at www.reacpa.com/episode-5. LET’S TALK ABOUT THE F-WORD By Annie Yoder, CPA, CFE, CFF, principal (New Philadelphia office)