Affordable Care Act New Tax Penalties: Impact on Individuals and Employers

Why Should You Attend:

The penalty on individuals who lack coverage altogether or whose coverage fails to meet ACA standards will kick in with the 2014 filing season. It is critical to prepare now to help clients understand the penalties that could leave them upset when they find their tax refunds are reduced by these penalties. There are new terms tax professionals need to master now, such as ‘minimum essential coverage’ and ‘shared responsibility payment.’

The first part of this webinar will cover the ACA requirements for individuals that require the taxpayer and each member of the taxpayer’s family to have qualifying insurance or pay a tax on their 2014 returns. The course will instruct the tax return preparer in:

• Gathering appropriate information to help clients comply with the new law and possibly qualify for one of the many tough exemptions from the penalty tax
• Verifying whether individuals qualify for the new Premium Tax Credit, Form 8962, to help pay for their health insurance premiums

The second part of the webinar will cover the ACA requirements for employers to file the new form 1095-C for employees covered by the employer’s group health plan. It will analyze whether their plan meets the essential coverage requirements. Additionally, this segment will also include:

• Comprehensive examples of how to compute the shared responsibility payment for both an individual and an employer
• Discussions on alternate scenarios to minimize these payments (i.e. taxes)

Learning Objectives:

At the end of the course, attendees will gain a practical understanding of who will be affected by the ACA and who will be exempt from the new penalty tax. The other key learning areas will include:

• Determining how to compute the required annual payment, i.e., the shared responsibility payment
• Understanding whether the taxpayer’s health insurance meets the minimum essential coverage requirement
• Understanding the employer shared responsibility payment which will be imposed on some employers who do not offer health insurance in 2015 (2016)

Areas Covered in the Webinar:

• What is minimum essential coverage?
• Who are exempt?
• How is the shared responsibility payment computed?
• How is the shared responsibility payment collected by the IRS?
• What is the role of the tax return preparer in advising a taxpayer regarding their compliance with this new law?
• What impact will the employer shared responsibility payment have on the firm’s financial statements?
• How and when will employers who do not offer health insurance to their employees be affected?

Who Will Benefit:

• Compliance personnel in financial institutions
• Branch management staff
• Training department
• CPAs and EAs
• Tax attorneys
• Financial professionals advising clients on tax compliance

Instructor Profile:

Cherie Hennig began her career as an IRS revenue agent in Denver, Colorado, and has taught numerous undergraduate and graduate tax courses at Wake Forest University, University of North Carolina, Wilmington, Florida International University, Colorado State University, the University of South Florida, and Virginia Tech. Dr. Hennig has published many articles in major tax journals, is an author and co-author of numerous tax texts, and has written and taught many continuing professional education courses. She has been a faculty intern with local and national CPA firms, and has conducted research for the IRS Statistics of Income Division and the District Office of Research and Analysis. She is a member of the American Taxation Association, the American Institute of CPAs, and has served on the Tax Executive Committee of the AICPA Tax Division. Dr. Hennig received her Bachelor's, Master's, and Ph.D. degrees in accounting from the University of Colorado.

Topic Background:

The ACA presents many challenges for tax professionals who must deal with myriad compliance issues regarding healthcare coverage requirements under this complex law, while understanding how and when tax penalties associated with lack of coverage will be applied.

Employers with more than 50 full-time employees may be required to make shared responsibility payments for the 2015 (2016) tax year. These penalties will be based on the number of full-time employees, or full-time equivalents during the prior tax year.

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