The new calendar year is upon us, and there are numerous changes and new regulations expected that companies should be closely monitoring. As you look at your tax-planning activities for 2015, keep your eye on the following six issues.
The Affordable Care Act
The Affordable Care Act (ACA) is both a health care law and a tax with far-reaching ramifications. The Obama administration’s release of final guidance on Employer Shared Responsibility and information reporting requirements gave employers little time to ensure their systems are ready to comply. The ACA requires employers to track and report to the IRS a significant amount of employee data. Employers who took a “wait and see” approach to the law, particularly those with calendar-year benefit plans, might need to start gathering required reporting data immediately. This data often resides in multiple functions within the organization (HR, benefits, payroll, operations, etc.) or with vendors.
In addition to system readiness described above, companies must also evaluate excise tax implications that might result from not offering minimum essential coverage to a sufficient percentage of full-time employees on an entity basis. Missing more than 30% of employees that should be covered can result in millions of dollars in excise taxes and penalties. Companies must check and document their internal controls to ensure their systems properly track employee hours and contingent workers...
Source: Don Calvin (www.ohiocpa.com)
