Tax Implications of the Affordable Care Act

By Frank L Zerjav, CPA

Introduction Advisory Group Associates is an Professional Tax

Advisory firm founded by Certified Public Accountant (CPA) Frank L. Zerjav Sr. Through his company, Frank L. Zerjav, CPA, helps clients to prepare their Income Tax Returns,finding missed opportunities to lower tax burdens which allows clients to keep more of what they earn. In addition, together with his team of Professional Tax Associates who help clients to navigate through tax code revisions and requirements, like the Affordable Care Act (ACA). Because it is being rolled out in annual phases, the ACA continues to evolve and bring changes for taxpayers every year.

Tax Implications For businesses that have more than 50 full-time employees,

there are requirements for providing employee health insurance to all or a portion of staff. There are different criteria for employers to provide not only the health benefits but also varying tax forms to their employees. New tax forms introduced by the ACA include the 1095-A, 1095-B, and 1095-C.

For individuals, there is a penalty if they do not subscribe to health insurance. This penalty will increase each year and can cost families up to $2,085. Both employers and individuals may be concerned with how they are going to fund these new health insurance requirements. A tax professional can assist businesses and individuals in navigating the ACA.