Employer Tax Resources

The Affordable Care Act (ACA) requires that certain taxes be collected to fund aspects of the law, including Covered California — the statewide healthcare marketplace (aka the Exchange). Learn more about ACA taxes by going to the ACA Taxes tab below. For an overview of the ACA taxes that begin January 1, 2014 and how they impact your small business download our educational flyer (PDF, 118KB).

Learn more about the small business tax credit and download IRS forms for Blue Shield of California plans and Blue Shield of California Life & Health Insurance Company plans by going to the tabs below.

Affordable Care Act Taxes

 

One of the goals of the Affordable Care Act (ACA) is to ensure that everyone involved in the process of providing health care share responsibility in making sure that coverage is affordable and accessible. To this end, the ACA requires that certain taxes be collected in order to fund the aspects of health reform in 2014 related to the Insurance Marketplaces (aka the Exchanges) and guaranteed issue.

The Taxes

Beginning January 1, 2014, two new taxes will take effect as a result of the Affordable Care Act (ACA): the health insurer tax and the transitional reinsurance tax.

Health insurer tax

The purpose of this tax is to help fund premium subsidies and tax credits in the new Insurance Marketplaces. The total tax will start at $8 billion in 2014, and increases each year before reaching $14.3 billion in 2018. After this, the amount will increase based on the insurer's share of premium growth. This tax does not apply to self-funded (ASO) employers.

Transitional reinsurance tax

The purpose of this tax is to help create stability of premiums for coverage in the individual market and lower the financial effects of adverse selection by high risk enrollees. This tax assessment will total $25 billion, which will be collected from January 1, 2014 to December 31, 2016. This tax affects both fully-insured and self-funded (ASO) employers.

For an overview of taxes beginning January 1, 2014, download our ACA tax fact sheet (PDF, 24KB).


Blue Shield Market Impact

Employer Groups of 101 or more employees

Blue Shield began collecting the ACA taxes when required with renewals and new business documents generated on February 1, 2013 and thereafter.

For self-funded customers (who are responsible for the Transitional Reinsurance tax), plan sponsors must remit the Transitional Reinsurance Fee to the government. If further guidance is provided by the government, Blue Shield will accommodate any additional changes required by the ACA.

Employer Groups of 100 or fewer employees

Blue Shield's Small Group business will begin collecting the ACA taxes when required – on January 1, 2014. The ACA taxes will be incorporated into dues and premiums beginning January 1, 2014 and continuing thereafter.

For self-funded customers (who are responsible for the Transitional Reinsurance tax), plan sponsors must remit the Transitional Reinsurance Fee to the government. If further guidance is provided by the government, Blue Shield will accommodate any additional changes required by the ACA.

 

Small Business Tax Credit

 

The first phase of this provision provides a credit worth up to 35 percent of the employer's contribution to the employees' healthcare coverage, including contributions for medical, dental, and vision. And on January 1, 2014, the rate increases to 50 percent.

Visit the IRS website for more information and talk to your account to see if you’re eligible.

 

W-9s and Other IRS Forms

 

We've populated the W-9s for you, so just print and go!

Blue Shield of California plans Download W-9 
(PDF, 38KB)
Blue Shield of California Life & Health Insurance Company plans Download W-9
(PDF, 38KB)


Not sure which form to use? Give us a call at (800) 325-5166.

We update these forms often, but still advise that you check IRS website to make sure you have the most recent W-9s. You can also an also find the tax forms you need.