Affordable Care Act (ACA)
Healthcare Reform added two new sections to the Internal Revenue Code, which impose significant IRS reporting requirements to ALEs and employers sponsoring self-insured group health plans. Section 6055 requires entities that provide Minimum Essential Coverage (MEC) to report coverage information to the IRS (Form 1094-B) and furnish a statement to covered individuals (Form 1095-B). Section 6056 requires ALEs to report information about their coverage offerings to the IRS (Form 1094-C) as well as full-time employees (Form 1095-C). These forms are a key component to the IRS tracking and administering both the employer shared responsibility and the individual coverage mandate.
The reporting requirements are very complex and the penalties for noncompliance are significant. To successfully meet these obligations, it’s imperative employers have a strong reporting infrastructure in place to monitor and track the various requirements.
That’s where we can help. We have the expertise to assist employers in determining whether they are subject to the new reporting requirements and if so, what information is necessary to complete the required forms.
Cafeteria Plans (Flexible Spending Accounts)
Direct Bill/Retiree Billing
Health Reimbursement Arrangements (HRA)
Health Savings Accounts (HSA)
• All contributions are tax-exempt
• Withdrawals are never taxed if used for eligible medical expenses
• Accounts earn income tax-free
• Unused funds always rollover from year to year
• Accounts are individually owned and portable
• Individuals gain choice over how to spend their health care dollars
• Accounts can be used to save for future health care costs
McGregor & Associates, Inc. provides a comprehensive HSA solution that is versatile and tailored to meet the needs of the employer as well as the employee. McGregor & Associates, Inc. provides the nation’s most service-driven HSA solution.
• Dedicated Account Manager
• Customized enrollment and educational materials
• Group enrollment meetings
• Contribution processing
• Online access for employer to view and manage employee information
• Quarterly reporting
• Monitor contributions to ensure employees do not exceed the applicable IRS contribution limits
• Debit Card with MCC restrictions and IIAS integration, preventing tax penalties for ineligible withdrawals
• Contact employees who reach Medicare eligibility age to educate about the potential effects on their HSA
• Dedicated Account Manager
• Online access for complete account management
• Receipts can be uploaded and store electronically through an online Claims Vault
• Optional claims certification process
• Debit card with MCC restrictions and IIAS integration, virtually eliminating the need to save receipts
• Investment options available for balances in excess of $1,000
• Annual Statements
• Tax forms 5498-SA and 1099-SA
• Tax form 8889 is prepared as a courtesy for each account holder to file with their personal income tax return
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) are the newest benefit plan offering for small businesses with fewer than 50 full-time employees that do not offer any group health plan. The QSEHRA can provide employees and their families with reimbursement for eligible healthcare expenses, including premiums. In addition to a more attractive benefits package and caring for your staff, a QSEHRA offers employers a 100% tax deduction on all contributions.
• QSEHRAs can reimburse healthcare expenses under IRC Section 213(d), individual insurance premiums, or both.
• Employees must submit proof of coverage to the employer, verify eligibility under the QSEHRA for reimbursements and verify Minimum Essential Coverage (MEC)
• Employer determines maximum contribution for single employees and families (limits adjusted annually by IRS)
• Employer provides written notice to workforce 90 days before the start of the plan year with the following:
– Amount of the QSEHRA benefit
– Explanation that employees must notify the Exchange of the QSEHRA if they apply for a subsidy
– Consequences of not obtaining MEC, which may result in taxes and the inclusion of premium reimbursements in their gross income.
• Employer must include the amount of available QSEHRA benefits on the employees W-2s at the end of the plan year.
• Employer must file Form 720 and pay the Patient-Centered Outcomes Research Institute (PCORI) fee for each plan year (deadline: July 31)