Wednesday, February 18, 2015

IRS.gov Site and Affordable Care Act Tax Provisions for Employers

Dana Halvorson 

With it being tax season, you might find the IRS.gov's website that is focused on the Affordable Care Act's (ACA's) tax provisions for employers to be resourceful. As you are likely aware, the ACA contains benefits and responsibilities for large and small employers, with an employer’s size being determined by the number of its employees. According to the IRS site , employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. Generally, an employer with 50 or more full-time employees or equivalents will be considered a large employer.

The IRS.gov site​ notes specifically that for employers with:

· Fewer than 25 full-time equivalent employees may be eligible for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.

· Generally 50 or fewer employees may be eligible to buy coverage through the Small Business Health Options Program (SHOP). You can learn more at HealthCare.gov.

· 50 or more full-time equivalent employees will need to file an annual information return reporting whether and what health insurance they offered employees. In addition, they are subject to the Employer Shared Responsibility provisions.

· Regardless of size, all employers that provide self-insured health coverage to their employees must file an annual return reporting certain information for each employee they cover.


Certain affiliated employers with common ownership or part of a controlled group must aggregate their employees to determine their workforce size. Proposed regulations and FAQs provide more information about determining the size of your workforce.

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