Sullivan & Company - Certified Public Accountants 4709 Montgomery Lane #201 - Bethesda, MD, 20814 Phone: 301-657-8080

       

 



 



 

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This Month's Feature Articles

 

- Employer Responsibilities under the ACA
 

- Tips for Getting Paid on Time
 

- What Income is Taxable?
 

- Tax Tips for Foreign Taxpayers
 

- IRS Scam Alert: Erroneous Refunds & Fake Calls

 

Tax Tips

 

- April 1 Deadline for Retirement Plan Distributions


- Revised Form W-4: Check your Withholding
 

- There's Still Time to Make a 2017 IRA Contribution
 

- Do you Qualify for a Healthcare Exemption?
 

- Hurricane Victims may Qualify for EITC



 

 

 

 

 

 

Employer Responsibilities Under The ACA


 

The health care law contains tax provisions that affect employers. The size and structure of a workforce - small or large - helps determine which parts of the law apply to which employers.

 

Calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates during the year.

Two parts of the Affordable Care Act apply only to applicable large employers. These are the employer shared responsibility provisions and the employer information reporting provisions for offers of minimum essential coverage.

The number of employees an employer has during the current year determines whether it is an applicable large employer (ALE) for the following year. For example, you will use information about the size of your workforce during 2017 to determine if your organization is an ALE for 2018.

Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.

WHO IS A FULL-TIME EMPLOYEE?

There are many additional rules for determining who is a full-time employee, including what counts as hours of service, but in general:

- A full-time employee is an employee who is employed on average, per month, at least 30 hours of service per week, or at least 130 hours of service in a calendar month.
- A full-time equivalent employee is a combination of employees, each of whom individually is not a full-time employee, but who, in combination, are equivalent to a full-time employee.
- An aggregated group is commonly owned or otherwise related or affiliated employers, which must combine their employees to determine their workforce size.

 

 


 

FIGURING THE SIZE OF THE WORKFORCE
To determine your workforce size for a year, you add your total number of full-time employees for each month of the prior calendar year to the total number of full-time equivalent employees for each calendar month of the prior calendar year and divide that total number by 12. If the result is 50 or more employees, you are an applicable large employer.

EMPLOYERS WITH FEWER THAN 50 EMPLOYEES

If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year. Therefore, the employer is not subject to the employer shared responsibility provisions or the employer information reporting provisions for the current year.

INFORMATION REPORTING (INCLUDING SELF-INSURED EMPLOYERS)
All providers of health coverage, including employers that provide self-insured coverage, must file annual returns with the IRS reporting information about the coverage and about each covered individual. The coverage is reported on a Form 1095-B, Health Coverage and the employer must also furnish a copy of Form 1095-B to the employee by March 2, 2018 (this date reflects a 30-day extension from the original due date of January 31).
 


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TAX CREDITS
Certain employers may be eligible for the small business health care tax credit if they:

- cover at least 50 percent of employees' premium costs
- have fewer than 25 full-time equivalent employees with average annual wages of less than $52,400 in 2017
- purchase their coverage through the Small Business Health Options Program.

Employers with fewer than 50 full-time employees or full-time equivalent employees are not subject to the employer shared responsibility provisions.

EMPLOYERS WITH 50 OR MORE EMPLOYEES

INFORMATION REPORTING
All employers including applicable large employers that provide self-insured health coverage must file an annual return for individuals they cover and provide a statement to responsible individuals.




 

Applicable large employers must file an annual return--and provide a statement to each full-time employee--reporting whether they offered health insurance, and if so, what insurance they offered their employees.

ALEs are required to furnish a statement to each full-time employee that includes the same information provided to the IRS by March 2, 2018. ALEs that file 250 or more information returns during the calendar year must file the returns electronically.

EMPLOYER SHARED RESPONSIBILITY PAYMENT
ALEs are subject to the employer shared responsibility payment if at least one full-time employee receives the premium tax credit and any one these conditions apply. The ALE:

- failed to offer coverage to full-time employees and their dependents
- offered coverage that was not affordable
- offered coverage that did not provide a minimum level of coverage


QUESTIONS?

Do you have personal or business questions about the Affordable Care Act?  Don't hesitate to call the office today at 301-657-8080.

 

DID YOU KNOW that Sullivan & Company manages Pension Funds, Retirement Plans & Taxable Accounts through Archer Investment Corporation & Fidelity Investments for our clients.
Fidelity is the custodian for more retirement plans than any other custodian in the United States.


Let Sullivan & Company Analyze Your Asset Allocation & Risk Tolerance for FREE!
Call 301-657-8080 today!

 


 

 Wealth Management at Sullivan & Co. CPAs

Paul Sullivan leads our Wealth Management Group and is here to help you navigate your financial future.

 

As Investment Advisor Representatives, he and our Wealth Management team are able to provide an independent opinion on the investments you already own or are considering buying.

 

We can structure a portfolio based on your risk tolerance or we can help you decide how to invest in your company 401(k) plan.

 

We work with each client to identify their concerns and to provide solutions according to their situation.

Paul is also experienced in company retirement plans. If you own a business that does not have a plan; we can discuss your options and set up a plan that fits your company.

 

If your business already has a plan; we offer a free evaluation of the plan to ensure that it is up to date and working well for you and your employees.

Our goal is to provide personal, unbiased and independent advice to help you make well-informed decisions about your financial life and investments.

Contact Chris Bailey, CPA, MBA, IAR or Ben Perron, CPA, IAR or Paul Sullivan, CPA, IAR to set up a free initial consultation (301) 657-8080.

And as always if you have any questions about accounting or investments and how they effect you or your business, please give us a call. We can help guide you in the right direction.

 


 

Remember you can call our offices if you have any questions about these or any other accounting, tax, financial planning or insurance related issues, at 301-657-8080. 

 

Regards, Paul Sullivan, CPA, IAR

President, Sullivan & Company

 

 

 

 

Sullivan & Company, CPAs | 4709 Montgomery Lane | Bethesda, MD 20814 www.eSullivan.net | email: pSullivan@eSullivan.net
Direct: 240-316-3531 | Main no.: 301-657-8080 Ext 102 | Fax: 301-657-9055