Affordable Care Act Reporting Requirements for 2015 [Webinar Slides]
Affordable Care Act Webinar by Intuit
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Transcript of Affordable Care Act Webinar by Intuit
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Intuit Confidential
What It Means for Individuals and
Small Businesses
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Intuit Confidential
Meet your host…
2
Mike D’AvolioSenior Tax AnalystAccounting Professional Division
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Intuit Confidential
• Requires individuals be insured
• Complicated and dense!
• Marks a historic precedent
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Intuit Confidential4
You need to be insured in 2014
Key Exemptions…
Financial hardship Lowest cost plan exceeds 8% of
your household income Your income is below tax-filing
threshold
Individuals without coverage for less than 3 months
And others…
Without insurance, you risk incurring a tax penalty
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Intuit Confidential5
You’ve got options…
Employer Broker Medicaid Health Exchange
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Intuit Confidential6
Businesses with 50 or more full-time employees must offer it
• Penalty: $2K/yr. for every employee starting with the 31st employee
Employer-sponsored insurance
Businesses with fewer than 50 full-time employees are exempt
Tax credits available for employers who offer insurance
• Eligibility: ≤25 employees; avg. wages ≤$50K; employer covers ≥50% of coverage
Affordable options are available (e.g. HRA, HSA)
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Intuit Confidential7
Health Exchanges
Public exchanges will be available in all 50 states
Plans have four levels of coverage: Platinum, Gold, Silver and Bronze
Subsidies available for those that are financially eligible
All plans offer “minimum essential coverage”
Private exchanges are an alternative
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Intuit Confidential8
Are you eligible for a subsidy?
Determine your household size
Determine your household income
If it falls within the guidelines relative to the Federal Poverty Line, you’re eligible:
Persons in household
Federal Poverty Line ($/yr.)
Income Level Premium as a Percent of Income
1 $11,170 Up to 133% FPL 2% of income
2 $15,130 133-150% FPL 3 – 4% of income
3 $19,090 150-200% FPL 4 – 6.3% of income
4 $23,050 200-250% FPL 6.3 – 8.05% of income
5 $27,010 250-300% FPL 8.05 – 9.5% of income
6 $30,970 300-400% FPL 9.5% of income7 $34,930
8 $38,890
1
2
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Stay tuned for an Intuit subsidy calculator!
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Intuit Confidential9
Can’t afford insurance?
17%†
83%††
Meet Mary, a school teacher and a single mother with one child. She earns $45K a year. Based on her subsidy, the state covers 17% of her premium:
% of Premium Paid by Mary
Assumes annual premium of $5,160. †Amounts to $885; † †
Amounts to $4,275
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Intuit Confidential
Common MythsMisconceptions and Facts About The ACA
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Intuit Confidential
Myth #1
The penalty for not having insurance is insubstantial.
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Fact: The penalty can be significant. In 2016…
• The penalty is the greater of $695/yr.
OR
• 2.5% of income
Examples:
Family of 4 earning $25K would pay $695
Family of 4 earning $100K would pay $2,500
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Intuit Confidential
The penalty is phased in over time
13
Flat fee portion % of household income portion
2014 $95 1%
2015 $325 2%
2016 $695 2.5%
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Intuit Confidential
Myth #2
I don’t need to do anything until 2014.
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Intuit Confidential
Fact: There are things you can do this year!
• April 15th, 2013: Keep your 2012 tax return as it will determine your subsidy-eligibility
• October 1st, 2013: You can start enrolling in a insurance plan on public exchanges
• January 1st, 2014: Make sure you’re insured!