Trade Preferences Extension Act Restores Health Coverage Tax Credit, Increases ACA Misfiling Penalties

In June, the President signed the Trade Preferences Extension Act of 2015 (TPEA).

Among other provisions, the TPEA restored the Health Coverage Tax Credit (HCTC), which previously expired at the end of 2013. The HCTC subsidized health insurance premiums for certain retirees and employees who were laid off due to foreign competition against U.S. companies. The HCTC will be in effect through the end of 2019. The IRS has stated that guidance regarding the HCTC will be released shortly.

Additionally, the TPEA sharply increased the penalties employers must pay for filing incorrect 6055 and 6056 forms required by the Affordable Care Act. On or after December 31, 2015, the penalties for misfiling or failing to file these forms will roughly double, and no relief will be available for employers who fail to file on time and do not make a good faith effort at complying with reporting requirements. This means that employers will have more financial skin in the game when it comes to filing timely and accurate 6055 and 6056 forms.

About The Boon Group

The Boon Group® is a full service employee benefits company specializing in the design, implementation and administration of cost-effective fringe benefit plans for federal, state and local government contractors. Since 1982, The Boon Group has developed a partnership philosophy that expands beyond the products and services we offer. We stand with the employers and employees who, just like all who work at The Boon Group, are faced with the daunting task of navigating the U.S. healthcare system. Together, we can find a better way for all Americans to access healthcare. The Boon Group, Inc. is the parent holding company of The Boon Insurance Agency, Inc., Boon Administrative Services, Inc. (formerly named CEBA), Boon Insurance Management Services, L.P., Health & Welfare Benefit Systems, Inc. and Boon Investment Group, Inc. The Boon Group was formed to support and strengthen the position of these companies as a wholesaler of exclusive products and services.
This entry was posted in ACA reporting, Affordable Care Act, compliance, employee benefits, Trade Preferences Extension Act of 2015 and tagged , , , , , , . Bookmark the permalink.

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