Anders CPAs and Advisors Obamacare and Spousal Coverage

In a recent discussion provided and published by Anders CPAs and Advisors (Anders) the requirement by the ACA (aka Obamacare) for large (50 or more full time employees) businesses to offer healthcare coverage to employees’ spouses was addressed. As an important member of your clients’ decision making team the advice you give must be sound but precisely accurate.

Through a series of questions and answers Anders brings forth the responsibilities of large businesses with regard to healthcare coverage. The first question dealt with a big business offering coverage to the employee and his/her dependent children only, and not the spouse. Anders answered this with a “no.” Fines would be issued if not provided for employee and dependent children.

Andres further clarifies that “in this context, ‘dependents’ means an employee’s children, as defined in Section 152(f)(1) of the Internal Revenue Code, who are under 26 years of age (not including stepchildren and foster children). For purposes of employer penalties the term ‘dependents’ doesn’t include anyone other than an employee’s children, as defined above. Thus, neither your company nor any applicable large employer is required to offer coverage to an employee’s spouse to avoid employer play-or-pay penalties.”

A CPA adds value to his clients by keeping on top of new legislation and how, upon implementation” such laws are to be followed.