Attorney Danny Miller, an editorial advisor for Church Finance Today, specializes in employee benefits and closely follows the Affordable Care Act and its many implications for nonprofits and religious organizations. Miller recently sat down with Church Finance Today to share key ACA developments and requirements that churches should note in 2016.
A few key employer reporting requirements for the ACA take effect in 2016. What should churches know?
The employer reporting requirements in 2016 are the biggest issue for churches to understand.
One ACA reporting requirement pertains to the so-called "individual mandate." By February 1, employers are required to tell the Internal Revenue Service which employees had "minimum essential coverage" in the 2015 tax year. Every person is supposed to carry health insurance coverage. If the person doesn't, then the person has to pay a tax.
This employer reporting requirement applies to all employers—there is no small employer exemption. However, the following situations may affect whether your church has to submit a report directly to the IRS or not: