Under the Affordable Care Act (ACA) health care reform law, employees who don’t have access to affordable group health insurance that provides minimum value may obtain individual insurance through the exchanges. As part of their core responsibilities, exchanges determine whether employees qualify for advance premium tax credits and other cost-sharing reductions. Two sets of regulations relate to the concept of affordable health insurance.
Short route to contesting employees’ eligibility for tax credits
You will have two avenues to contest employees’ eligibility for premium tax credits. After employees reconcile their advance tax credits on their 1040s, it will become clear whether they qualified for them. If they did, you can contest your liability for free-rider penalties with the IRS, as you can contest any tax penalty. Drawback: It will be quite some time before all this information is known to the IRS and you. Therefore,...(register to read more)