ACA letter to business owner and employees

[ILLMAS]

Hello, does anyone have a letter (template) that explains what are the requirements for the employer and employees they can share? You can PM if you wish.

Thanks

[Guest Taxed]

I am in the process of putting together something for my business clients. I want to keep it simple because I don't want to get involved too deeply into this. It will be more like a time line, and what is required of the employer etc. How they get it done is their business.

For 2014

A tax credit is available to eligible small businesses of up to 50% of the employer’s contribution as long as the employer contributes at least 50% of the total premium or 50% of a benchmark premium. The credit is available up to two years. Tax-exempt small businesses meeting the eligibility requirements can receive a tax credit of up to 35% of the employer’s contribution.

Steps to determine whether an employer is eligible for a small business health care credit:

Determine the employees who are taken into account for purposes of the credit.
Determine the number of hours of service performed by those employees.
Calculate the number of the employer’s full-time equivalents (FTEs).
Determine the average annual wages paid per FTE.
Determine the premiums paid by the employer that are taken into account for purposes of the credit.

Specifically, the premiums must be paid by an employer under a qualifying arrangement and must be
paid for health insurance that meets the requirements of section 45R.

In general, employees who perform services for the employer during the taxable year are taken into account
in determining the employer’s FTEs, average wages, and premiums paid, with certain individuals excluded
and with employees of certain related employers included.

Exclusions from the definition of an employee are sole proprietors, partners in a partnership, shareholders
owning more than two percent of an S corporation and any owners of more than 5% of other businesses.
Family members of owners and partners are also not taken into account as employees.

[grmy2h]

The Marketplace application determines if the small business qualifies for the tax credit. I got a call from them yesterday. (I mailed the paperwork in October)

They called to tell me that my application was incomplete because I failed to list one employees SS#. I told her that that employee withheld consent. She tried to tell me that my application could not go forward without that info and we could not qualify until they received a completed application. We went around and around until I asked that she elevate this to a supervisor. I asked - "how can one employee hold up a company from qualifying, the requirement is 70% participation?" She agreed and we hung up. 30 or so minutes went by and she called back to tell me that the application CAN go forward, she apologized and explained she had not run into this situation before. She said I would hear back from them soon as to whether we qualify for the credit or not.

[michaelmars]

www.dolnotice.com has the required employer notices