Are you prepared for new Affordable Care Act requirements? Here are the changes to look for in 2015:
1. Increase in individual penalties. The 2015 penalty for uninsured taxpayers is the greater of $325 per person or 2% of income with a cap of $2,570.
2. Repayment of the premium tax credit. If you are insured by Covered California and are receiving the prepaid Premium Tax Credit, you will have to repay some or all of it with your 2015 tax return if your income is higher than estimated.
3. Employer coverage requirements. Employers with 100 or more full-time employees must offer health care coverage or face penalties.
4. Employer reporting requirements. Employers with 50 or more full-time employees must provide Forms 1095-C to their employees and copies to the IRS. Employers with more than 250 employees must report the cost of employer-paid health insurance on each employees' W-2. For employers with fewer than 250 employees, transition relief was announced in 2013 and no further guidance has been provided at this time, so currently reporting is optional.