Tax Reform & Your Business: ACA
Have the provisions of the Affordable Care Act changed? There may be some misconceptions about how tax reform has impacted the ACA. Laurie Savage, Paychex senior compliance analyst, provides some clarifications.
More tax reform videos: General overview | Employer tax credit for paid family and medical leave | Tax tables and Form W-4 changes | Pass-through entities and accelerated depreciation | States’ response
Full transcript:
Hi, I am Laurie Savage, senior compliance analyst at Paychex. And today, we’re going to talk about how the federal tax overhaul impacted the Affordable Care Act. So one of the big headlines was that the tax reform repealed the individual mandate in the Affordable Care Act. And that is essentially true but not logistically so. What that means is it zeroed out the penalty associated with it, but it did not change the provisions. So this year, this is not in effect. But as of 2019, that penalty amount will be zero, essentially repealing the individual mandate portion. So you still have your reporting requirements that are both for insurers and self-insured employers. Both of those still have the reporting requirements.