The Case of the Missing Small Business Health Care Tax Credit. Agenda

Size: px
Start display at page:

Download "The Case of the Missing Small Business Health Care Tax Credit. Agenda"

Transcription

1 The Case of the Missing Small Business Health Care Tax Credit Mark Bole, EA July 11, 2012 CSEA Annual Meeting, Redding, CA Agenda Identify the business clients who meet the basic criteria for the credit Learn to gather the required data and properly prepare Form 8941 (and Form 3800) Help business clients plan to maximize the credit in coming years Review in brief other health-care related tax benefits for businesses (if time permits) Copyright 2012 Mark Bole, EA 1 1

2 Facilitator Introduction Agenda Identify the business clients who meet the basic criteria for the credit Learn to gather the required data and properly prepare Form 8941 (and Form 3800) Help business clients plan to maximize the credit in coming years Review in brief other health-care related tax benefits for businesses (if time permits) Copyright 2012 Mark Bole, EA 2 2

3 Under the Affordable Care Act (PPACA, aka Obamacare), from 2010 to 2015 (not!), a credit is available for employers who provide health insurance for their employees. What Is It? 25 or fewer full-time equivalent (FTE) employees Pays an average annual wage of no more than $50,000 Pays health insurance premiums for employees under a qualifying arrangement (minimum 50% for 2010) Why Is It Missing? IRS mailed postcards * to over 4 million small businesses and tax-exempts to ensure they are aware of the new credit. (News Release IR ) Count per State for Special Post Card Notice California 502,923 11% New York 340,358 8% Texas 292,593 7% Florida 289,995 7% Illinois 194,072 4% Other states 2,821,206 64% Total 4,441, % * At a reported cost of approximately $1 million Copyright 2012 Mark Bole, EA 3 3

4 Why Is It Missing? Why Is It Missing? According to the IRS, it has completed more than 1,000 outreach and educational actions The IRS also used Press releases Electronic messages A telephone line Presentations An internet page YouTube video Copyright 2012 Mark Bole, EA 4 4

5 Why Is It Missing? messages received Sep 2011 through May 2012 mentioning the Small Employer Health Care Credit Why Is It Missing? The IRS conducted focus groups with tax practitioners in conjunction with its Nationwide Tax Forums Few had completed Form 8941 Instructions for calculating the FTEs were not clear The Credit is not easy to calculate Payroll information needed was not readily available Practitioners indicated that in the current economy, the Credit was not enough to encourage their clients to start offering insurance. Copyright 2012 Mark Bole, EA 5 5

6 Why Is It Missing? What Is The Big Deal? Example: One employee $20,000 wages 800 hours [$20, hr = $25/hr] employer paid 50% of health insurance = $1,000 Credit = $350 Copyright 2012 Mark Bole, EA 6 6

7 What Is The Big Deal? Takes into account different rates for different states Here s the Complication Previous example: One employee $20,000 wages 800 hours [$20, hr = $25/hr] employer paid 50% of health insurance = $1,000 Credit = $350 New example: Add one employee $30,000 wages (+ 20,000 = $50,000 total) 2,000 hours [$30,000 2,000hr = $15/hr] (+ 800 = 2,800 hours total) employer paid 50% of health insurance = $1,000 (+ $1,000 = $2,000 total) Credit = $0 What happened? Isn t the average annual wage per FTE still below $50K? Copyright 2012 Mark Bole, EA 7 7

8 What Is The Big Deal? Common sense calculation: (2, ) hrs 2,080 hrs/yr = 1.35 FTE $50, = $37,143 average wage But that s not how the credit works! Who Is An Eligible Employer? Of the roughly 6 million employer businesses in this country, the National Federation of Independent Businesses, which opposes the president s healthcare law, [emphasis added] found that less than 2 million have the size, payroll, and insurance coverage requirements to be eligible for the credit. Only one-third? I ll take that! Copyright 2012 Mark Bole, EA 8 8

9 Who is Really an Employer? PEO s (Professional Employer Organizations) leased employees count, as long as premiums are paid by employer (not PEO) and has performed services for you substantially full time for at least 1 year. Connecting employer to PEO is problematic for IRS Audit of payroll tax returns possible Household employers does not need to be a trade or business! Who is Really an Employer? Tax-exempt organizations described in IRC section 501(c) and exempt from tax under section 501(a) may also qualify The Credit is refundable to tax-exempt organizations, but only to the extent it does not exceed the total amount of income tax and Medicare tax withholding from employees wages and the employer share of Medicare tax (alert: audit risk!) Copyright 2012 Mark Bole, EA 9 9

10 Who is Really an Employer? Employers located outside the United States as long as premiums paid to US insurer Employers who are part of a controlled group or affiliated service group (IRC 414(b), (c), (m), or (o)) are treated as a single employer Who is Really an Employee? These are NOT an employee for purposes of the credit: Sole proprietors Partners in a partnership Shareholders owning more than two percent of an S corporation Any owners of more than five percent of other businesses Copyright 2012 Mark Bole, EA 10 10

11 Who is Really an Employee? These are NOT an employee for purposes of the credit: Relatives of the owners (the qualifying relative definition, includes in-laws, aunts/uncles, nieces/nephews, parents/stepparents, etc) Dependents of the owner(s) in the same household Spouses of the owners Who is Really an Employee? Seasonal workers are disregarded in determining FTEs and average annual wages unless the seasonal worker works for the employer on more than 120 days during year Ministers if, under the common law test, the minister is an employee, the minister is taken into account in determining an employer s FTEs and premiums paid Copyright 2012 Mark Bole, EA 11 11

12 Who is Really an Employee? Former employees who terminated employment during the year Employees covered under a collective bargaining agreement Employees who do not enroll in their employer s health insurance plan (whether or not they are covered under another health insurance plan) What about Wages & Hours? Wages are all payments subject to Medicare withholding Wages and hours include PAID vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence If employee works more than 2,080 hours in a year, include all overtime wages but maximum 2,080 hours Copyright 2012 Mark Bole, EA 12 12

13 What is Really a Health Plan? An arrangement under which the employer pays premiums for each employee in a uniform percentage (not less than 50 percent) of the premium cost of the coverage Includes hospital or medical policies or service plans; dental or vision; long-term care HSAs and Self-Insured Plans, including HRAs and FSAs, are not Qualifying Arrangements What is Really a Premium Payment? Premiums paid for seasonal employees may be counted, even if worked less than 120 days Limited to the premium payments the employer would have made using the average premium for the small group market in the State For more information about plans, premium payments, and transition relief, see Instructions for Form 8941 Copyright 2012 Mark Bole, EA 13 13

14 Agenda Identify the business clients who meet the basic criteria for the credit Learn to gather the required data and properly prepare Form 8941 (and Form 3800) Help business clients plan to maximize the credit in coming years Review in brief other health-care related tax benefits for businesses (if time permits) Flowing the Credit thru the Tax Return Most businesses and individuals report as part of the General Business Credit (Form 3800) and then transfer (to the extent allowed) to Form 1120 or Form 1040 Partnerships, S corporations, estates and trusts report as part of Schedule K Tax-exempt organizations report on the Exempt Organization Business Income Tax Return (Form 990-T). Copyright 2012 Mark Bole, EA 14 14

15 Tax Return Flow Illustrated Collect Data from Taxpayer Simple spreadsheet for basic situation: Copyright 2012 Mark Bole, EA 15 15

16 Why Does This Fail? Previous example: One employee $20,000 wages 800 hours [$20, hr = $25/hr] employer paid 50% of health insurance = $1,000 Credit = $350 New example: Add one employee $30,000 wages (+ 20,000 = $50,000 total) 2,000 hours [$30,000 2,000hr = $15/hr] (+ 800 = 2,800 hours total) employer paid 50% of health insurance = $1,000 (+ $1,000 = $2,000 total) Credit = $0 What happened? Isn t the average annual wage per FTE still below $50K? The Evil of Rounding Down FTE s are rounded DOWN, so even 1.9 FTE yields only 1 FTE for the credit calculation. This drives average wages UP. Phase-out starts at $25K and ends at $50K average annual wages. Common sense $50, FTE = $37,143 average wage Phase-out complete at $50K Copyright 2012 Mark Bole, EA 16 16

17 Alternative Hours to the Rescue! Three different methods for counting total hours of service. (Regardless of the method used, do not count more than 2,080 hours for any one employee.) 1. Actual hours. Count the actual hours of service for each employee. 2. Weeks-worked equivalent hours. Count 40 hours for each week that the employee has at least one hour of service. 3. Days-worked equivalent hours. Count 8 hours for each day that the employee has at least one hour of service. Using Weeks Worked Method Assume each of the two employees managed to clock in at least one hour of work (or paid time off) every week of the year. Rounding UP with a vengeance Copyright 2012 Mark Bole, EA 17 17

18 Using the Alternate Methods To Avoid Phase-Outs Why use alternate methods? To avoid phaseouts. FTE Limitation credit is reduced if more than 10 FTEs for the tax year. If 25 or more FTEs, credit is reduced to zero Average Annual Wage Limitation credit is reduced if average annual wages of more than $25,000 for the tax year. If $50,000 or more, credit is reduced to zero Using the Alternate Methods To Avoid Phase-Outs Two scenarios: Need to drive average wage down to get under the $50K max phase out, so maximize hours Need to drive FTE down, to get under the 25 FTE max phase out, so minimize hours Need not use the same method for all employees, for example, use the actual hours method for all hourly employees and the weeks-worked method for all salaried employees May change the method for calculating employees hours of service for each taxable year Copyright 2012 Mark Bole, EA 18 18

19 Using the Alternate Methods To Avoid Phase-Outs The two phase-outs are additive. For example, let s assume 19 FTE s and $35,000 average wage. FTE limit: the phase-out is straight-line over the last 15 employees (begins at 10, ends at 25). So (19 10) 15 = 60% reduction Avg Annual Wage limit: the phase-out is straight-line over the last $25K wages (begins at $25K, ends at $50K). So (35,000 25,000) 25,000 = 40% reduction The two phase-outs together reduce credit to zero. Using Software To Optimize Credit Many possible values for the credit, depending on which servicehours method you use and how you apply it to classes of employees. Software is your friend! UltraTax: ProSeries: You figure it out Copyright 2012 Mark Bole, EA 19 19

20 Collect Data from Taxpayer Need to collect days and weeks worked too: Add two columns, one for days worked, one for weeks worked Credit Reduces Deduction Employers will continue to be able to deduct the costs in excess of the Credit amount as an ordinary expense for employee compensation. Example: Copyright 2012 Mark Bole, EA 20 20

21 State Subsidies For employers receiving a State credit or subsidy for health insurance, Credit cannot exceed the employer s actual premium payment. Include subsidy when calculating Credit CA does not have any state subsidy, per my research Carryback, Carryforward (Form 3800) For 2010, the unused credit can be carried forward 20 years as a general business credit For 2011, the unused credit can be carried back to 2010, the first year that the credit was in effect. Any unused credit can then be carried forward to 2012 and later years Copyright 2012 Mark Bole, EA 21 21

22 Agenda Identify the business clients who meet the basic criteria for the credit Learn to gather the required data and properly prepare Form 8941 (and Form 3800) Help business clients plan to maximize the credit in coming years Review in brief other health-care related tax benefits for businesses (if time permits) What s Coming? The $50,000 wage threshold is adjusted for inflation after 2013 The maximum credit percentage increases from 35% to 50% after 2013 (increase to 35% for tax-exempt) After 2013, the credit may be claimed for no more than two consecutive years After 2013, qualified health plans must be through a state exchange Copyright 2012 Mark Bole, EA 22 22

23 IRS Advice Some businesses and tax-exempt organizations that already locked into health insurance plan structures and contributions may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010 or These employers can still make the necessary changes to their health insurance plans so they qualify to claim the credit on 2012 returns or in years beyond. Optimize the Credit Arrange for employees to have at least one paid hour per day or per week if needed to avoid average annual wage limitation, using alternate hours-worked methods Ongoing record keeping to ease year-end Copyright 2012 Mark Bole, EA 23 23

24 Look at After-Tax Cost of Health Insurance Credit available for two years beginning 2014 at increased rate, but cost of insurance continues beyond Sample calculation 9 : Total employer cost 25% bracket Agenda Identify the business clients who meet the basic criteria for the credit Learn to gather the required data and properly prepare Form 8941 (and Form 3800) Help business clients plan to maximize the credit in coming years Review in brief other health-care related tax benefits for businesses (if time permits) Copyright 2012 Mark Bole, EA 24 24

25 References 1. IRS Notice Hearing Before The Committee On Ways And Means Subcommittee On Oversight, U.S. House Of Representatives, Implementation and Effectiveness of the Small Business Health Care Tax Credit, TIGTA, November 15, IR , IRS Encourages Small Employers to Check Out Small Business Health Care Tax Credit - IRS YouTube Video 4. IRS Notice IRS Publication IRS Instructions for Form PPACA - additional IRS and Treasury Guidance on Health Insurance Plans, Cherie J. Hennig, Ph.D. and Bob Thompson, NATP TAXPRO Journal Winter PPACA and the small business Health Insurance Credit, Cherie J. Hennig, Ph.D. and Bob Thompson, NATP TAXPRO Journal Fall References Overview of Key Tax Provisions of Health Care Reform Acts (HR3590 and HR4872), The Tax Institute at H&R Block, As of: 4/25/2011 (NAEA free research service) 12. IR , March 13, 2012, IRS Encourages Small Employers to Check Out Small Business Health Care Tax Credit Copyright 2012 Mark Bole, EA 25 25

26 Thank you! Questions? Copyright 2012 Mark Bole, EA 26 26

Implementation and Effectiveness of the Small Business Health Care Tax Credit

Implementation and Effectiveness of the Small Business Health Care Tax Credit HEARING BEFORE THE COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON OVERSIGHT U.S. HOUSE OF REPRESENTATIVES Implementation and Effectiveness of the Small Business Health Care Tax Credit November 15, 2011 Washington,

More information

Small Employer Health Care Tax Credit: Questions & Answers (Q&A)

Small Employer Health Care Tax Credit: Questions & Answers (Q&A) Brought to you by Seubert & Associates Small Employer Health Care Tax Credit: Questions & Answers (Q&A) The Patient Protection and Affordable Care Act (ACA) provides a tax credit to certain small employers

More information

Small Employers Eligible for Health Care Tax Credit

Small Employers Eligible for Health Care Tax Credit Brought to you by Clark-Mortenson Insurance Small Employers Eligible for Health Care Tax Credit The Affordable Care Act (ACA) created a health care tax credit for eligible small employers that provide

More information

Small Business Health Care Tax Credit: Presented by Maureen O Gara-Adford, CPA & David Fox, Senior Accountant

Small Business Health Care Tax Credit: Presented by Maureen O Gara-Adford, CPA & David Fox, Senior Accountant Small Business Health Care Tax Credit: Presented by Maureen O Gara-Adford, CPA & David Fox, Senior Accountant Today s Speakers Maureen O Gara-Adford, CPA Practicing CPA since 1989 Managing partner since

More information

The Small Business Health Care Tax Credit Kit

The Small Business Health Care Tax Credit Kit The Small Business Health Care Tax Credit Kit About the Small Business Health Care Tax Credit Kit This Kit is designed to assist small employers in understanding the Small Business Health Care Tax Credit,

More information

Small Business Health Care Tax Credit

Small Business Health Care Tax Credit Small Business Health Care Tax Credit Small Business Health Tax Credit Began in 2010 Helps small businesses and tax-exempt organizations afford the cost of covering their employees Specifically targeted

More information

Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers

Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers Part III - Administrative, Procedural, and Miscellaneous Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers Notice 2010-44 I. PURPOSE AND BACKGROUND Section 45R of the Internal

More information

Instructions for Form 8941

Instructions for Form 8941 2012 Instructions for Form 8941 Credit for Small Employer Health Insurance Premiums Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise

More information

Instructions for Form 8941

Instructions for Form 8941 2013 Instructions for Form 8941 Credit for Small Employer Health Insurance Premiums Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise

More information

Small Business Health Care Tax Credit: Frequently Asked Questions

Small Business Health Care Tax Credit: Frequently Asked Questions Small Business Health Care Tax Credit: Frequently Asked Questions The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective

More information

Small Business Health Care Tax Credit: Frequently Asked Questions

Small Business Health Care Tax Credit: Frequently Asked Questions Small Business Health Care Tax Credit: Frequently Asked Questions The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective

More information

Tax Credit for Small Employers

Tax Credit for Small Employers Employers Defined: Tax Credit Small employer definition for Tax Credit - number of full-time employees Fewer than 25 full-time employees with average wages of less than $50,000 Divide total hours for which

More information

IRS explains business credit available to small businesses and taxexempt organizations under the Health Care Act

IRS explains business credit available to small businesses and taxexempt organizations under the Health Care Act EY Payroll NewsFlash Vol. 11, 59 April 20, 2010 IRS explains business credit available to small businesses and taxexempt organizations under the Health Care Act This week, the IRS mailed four million postcards

More information

Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148)

Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148) Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148) Chris L. Peterson Hinda Chaikind April 20, 2010 Congressional Research Service CRS Report for Congress Prepared for Members

More information

Small Employer Tax Credit. Nuts and Bolts

Small Employer Tax Credit. Nuts and Bolts Small Employer Tax Credit Nuts and Bolts For more information contact your independent broker Total Benefit Solutions Inc (215)355-2121 http://www.totalbenefits.net Disclaimer This presentation is intended

More information

Small Business Health Care Tax Credit

Small Business Health Care Tax Credit Small Business Health Care Tax Credit Frequently Asked Questions Small Business Health Care Tax Credit This information is only intended as a high-level guide and is not to be relied upon as actuarial,

More information

Health Care Reform Employer Shared Responsibility Provisions

Health Care Reform Employer Shared Responsibility Provisions Health Care Reform Employer Shared Responsibility Provisions Safe Harbor Qualification This document provides an overview of the employer shared responsibility (ESR) provisions of the Affordable Care Act

More information

IRS Guidance on Employer Shared Responsibility Penalty

IRS Guidance on Employer Shared Responsibility Penalty Brought to you by Hammitt Benefits Group IRS Guidance on Employer Shared Responsibility Penalty Beginning in 2014, the Affordable Care Act (ACA) imposes pay or play requirements on large employers to help

More information

Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148)

Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148) Summary of Small Business Health Insurance Tax Credit Under PPACA (P.L. 111-148) Chris L. Peterson Hinda Chaikind April 5, 2010 Congressional Research Service CRS Report for Congress Prepared for Members

More information

Health-Care Reform Employer Shared Responsibility Provisions

Health-Care Reform Employer Shared Responsibility Provisions Health-Care Reform Employer Shared Responsibility Provisions CPA EDITION... This document provides an overview of the Employer Shared Responsibility provisions of the Affordable Care Act based on guidance

More information

Second wave of detailed guidance on new small business health care credit

Second wave of detailed guidance on new small business health care credit Page 1 of 5 Checkpoint Contents Federal Library Federal Editorial Materials Federal Taxes Weekly Alert Newsletter Preview Documents for the week of 12/09/2010 - Volume 56, No. 49 Articles Second wave of

More information

2013 Small Employer Health Care Tax Credit 1 Is Your Church or Organization Eligible?

2013 Small Employer Health Care Tax Credit 1 Is Your Church or Organization Eligible? 2013 Small Employer Health Care Tax Credit 1 Is Your Church or Organization Eligible? This announcement contains important information about the Small Employer Health Care Tax Credit to help you determine

More information

Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers

Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers Part III - Administrative, Procedural, and Miscellaneous Section 45R Tax Credit for Employee Health Insurance Expenses of Small Employers Notice 2010-82 I. PURPOSE AND BACKGROUND Section 45R of the Internal

More information

Key Considerations in Avoiding and Calculating Penalties Pursuant to the Employer Shared Responsibility Mandate

Key Considerations in Avoiding and Calculating Penalties Pursuant to the Employer Shared Responsibility Mandate and Calculating Penalties Pursuant to the Employer Shared Compliance Practice of Arthur J. Gallagher & Co. As a preliminary step, employers must determine if their organization is subject to the mandate.

More information

SMALL BUSINESS. 1 NATP TAXPRO Journal Fall 2010 www.natptax.com

SMALL BUSINESS. 1 NATP TAXPRO Journal Fall 2010 www.natptax.com SMALL BUSINESS 1 NATP TAXPRO Journal Fall 2010 www.natptax.com PPACA and the small business Health Insurance Credit By Cherie J. Hennig, Ph.D, and Bob Thompson The Patient Protection and Affordable Care

More information

Summary of the Small Business Health Insurance Tax Credit Under ACA

Summary of the Small Business Health Insurance Tax Credit Under ACA Summary of the Small Business Health Insurance Tax Credit Under ACA Annie L. Mach Analyst in Health Care Financing Joy M. Grossman Section Research Manager November 4, 2014 Congressional Research Service

More information

And Changes under Healthcare Reform affecting businesses

And Changes under Healthcare Reform affecting businesses And Changes under Healthcare Reform affecting businesses 1 Individual Mandate 2 First there were two choices Under the Affordable Care Act every individual must have Minimum Essential Healthcare Coverage

More information

Small Business Health Care Tax Credit Frequently Asked Questions

Small Business Health Care Tax Credit Frequently Asked Questions Caring For Those Who Serve Since 1908 1901 Chestnut Avenue Glenview, Illinois 60025-1604 1-800-851-2201 www.gbophb.org March 28, 2013 Small Business Health Care Tax Credit Frequently Asked Questions The

More information

Tax Credit to Offset Cost of Health Insurance

Tax Credit to Offset Cost of Health Insurance 640 Superior Court - Medford, OR 97504 Ph. 541-773-6633 May 18, 2010 Tax Credit to Offset Cost of Health Insurance Calculating the Small Employer Health Insurance Tax Credit for 2010 Type of Clients: Small

More information

Small Business Tax Credit for Employee Health Expenses

Small Business Tax Credit for Employee Health Expenses Small Business Tax Credit for Employee Health Expenses Summary: Provides a sliding scale tax credit to small employers with fewer than 25 employees and average annual wages of less than $40,000 that purchase

More information

2010 FOCUS ON BUSINESS

2010 FOCUS ON BUSINESS 2010 FOCUS ON BUSINESS December 1, 2010 FEDERAL TAX UPDATE 2010 SMALL BUSINESS JOBS ACT & MISCELLANEOUS TAX PROVISIONS PRESENTED BY: DAVID P. VENISKEY, CPA TAX PARTNER EFP ROTENBERG, LLP TAX RATES Income

More information

Concordia Plan Services is providing the following questions and answers relating to the Small Business Health Care Tax Credit.

Concordia Plan Services is providing the following questions and answers relating to the Small Business Health Care Tax Credit. Small Business Health Care Tax Credit Frequently Asked Questions Concordia Plan Services is providing the following questions and answers relating to the Small Business Health Care Tax Credit. Q-1 A-1

More information

The Affordable Care Act:

The Affordable Care Act: The Affordable Care Act: An Update on the Employer Mandate William A. Dombi, Esq. MARCH ON WASHINGTON Conference & Exposition March 24, 2014 Health Care Reform Framework Health insurance reforms Expanded

More information

Employer-Shared Responsibility

Employer-Shared Responsibility Affordable Care Act Planning to Deal with the Pay-or-Play Penalties Effective January 1, 2015 Anne Hydorn Hanson Bridgett LLP Telephone: (415) 995-5893 Email: ahydorn@hansonbridgett.com Judy Boyette Hanson

More information

Tax Implications of the Affordable Care Act

Tax Implications of the Affordable Care Act Year-by-Year Guide Tax Implications of the Affordable Care Act 1 Year-by-Year Guide: Tax Implications of the Affordable Care Act Introduction The Patient Protection and Affordable Care Act, commonly referred

More information

Health Care Reform and Your Business

Health Care Reform and Your Business Health Care Reform and Your Business Timelines and Implications of the Law for Business Owners Updated as of January 2015 Health Care Reform and Your Business The Patient Protection and Affordable Care

More information

The Affordable Care Act: What Does It Mean for Agricultural and Small Business Employers?

The Affordable Care Act: What Does It Mean for Agricultural and Small Business Employers? The Affordable Care Act: What Does It Mean for Agricultural and Small Business Employers? The Patient Protection and Affordable Care Act (ACA) includes provisions that will have significant implications

More information

Health Care Reform and Your Business

Health Care Reform and Your Business Health Care Reform and Your Business Timelines and Implications of the Law for Business Owners Updated as of December 2013 Health Care Reform and Your Business The Patient Protection and Affordable Care

More information

IRS Releases Proposed Regulations on the Affordable Care Act s Play or Pay Mandate

IRS Releases Proposed Regulations on the Affordable Care Act s Play or Pay Mandate IRS Releases Proposed Regulations on the Affordable Care Act s Play or Pay Mandate 1710/14380-001 Current/20681029v1 NETWORK smart partners Table of Contents A special report on IRS Proposed Regulations

More information

Health Care Reform Will Benefit Small Businesses in Massachusetts

Health Care Reform Will Benefit Small Businesses in Massachusetts Health Care Reform Will Benefit Small Businesses in Massachusetts 1 P a g e WHY SMALL BUSINESSES NEED HELP LESS THAN HALF INSURE WORKERS: Only 45% of America s smallest firms currently can afford to offer

More information

Health Care Reform Act: Who s Paying the Bill?

Health Care Reform Act: Who s Paying the Bill? Health Care Reform Act: Who s Paying the Bill? Walter Miller Schwabe, Williamson & Wyatt P.C. 800 Willamette Street, Suite 600 Eugene, OR 97401 (541) 686-3299 wmiller@schwabe.com TABLE OF CONTENTS Page

More information

Maryland Health Connection SHOP FAQs

Maryland Health Connection SHOP FAQs SHOP DIRECT ENROLLMENT PROGRAM Maryland Health Connection SHOP FAQs 1. How can I get coverage for my employees through the SHOP Marketplace in Maryland? If you are an employer who is interested in purchasing

More information

Guidance issued on employer shared responsibility requirements

Guidance issued on employer shared responsibility requirements Guidance issued on employer shared responsibility requirements The shared responsibility requirements are one of the most significant provisions that employers need to address under the Affordable Care

More information

Federal Register / Vol. 78, No. 165 / Monday, August 26, 2013 / Proposed Rules

Federal Register / Vol. 78, No. 165 / Monday, August 26, 2013 / Proposed Rules 52719 Availability of NPRMs An electronic copy of this document may be downloaded through the Internet at http://www.regulations.gov. Recently published rulemaking documents can also be accessed through

More information

Office Hours. ACA Potluck: IRS Provides Full Serving of New ACA Guidance. Recording

Office Hours. ACA Potluck: IRS Provides Full Serving of New ACA Guidance. Recording Recording Office Hours ACA Potluck: IRS Provides Full Serving of New ACA Guidance Guest Host Brian Gilmore, ABD Lead Benefits Counsel, VP Elizabeth Loh, Director, Trucker Huss, APC MARCH 24, 2016 ACA Potluck:

More information

Small Business Tax Credit

Small Business Tax Credit Small Business Tax Credit Effective January 1, 2010 Up to 4 million small businesses are eligible for tax credits to help them provide insurance benefits to their workers. The first phase of this provision

More information

Healthcare Reform Provisions Unique to Small Employers/Financial and Other Benefits Concerns for All Employers (updated May 2, 2014)

Healthcare Reform Provisions Unique to Small Employers/Financial and Other Benefits Concerns for All Employers (updated May 2, 2014) /Financial and Other Benefits Concerns for All Employers (updated May 2, 2014) Lisa L. Carlson, J.D., Area Senior Vice President, Compliance Counsel Gallagher Benefit Services, Inc. While most healthcare

More information

Small Business Health Care Tax Credit

Small Business Health Care Tax Credit Small Business Health Care Tax Credit The Patient Protection and Affordable Care Act (PPACA) established a small business health care tax credit (Tax Credit) as an incentive for small employers to provide

More information

Advantage Payroll Services Presents. March 24, 2015 Presenter: Jessica Stelfox, MBA, PHR

Advantage Payroll Services Presents. March 24, 2015 Presenter: Jessica Stelfox, MBA, PHR (c )A dv an ta ge Pa yr ol l Se rv ic es 20 15 Advantage Payroll Services Presents March 24, 2015 Presenter: Jessica Stelfox, MBA, PHR We encourage you to benefit from resources and information provided

More information

The Affordable Care Act: What Public Employers Need to be Doing Now

The Affordable Care Act: What Public Employers Need to be Doing Now The Affordable Care Act: What Public Employers Need to be Doing Now April 30, 2014 J. Richard Johnson IPMA-HR Webinar Copyright 2014 by The Segal Group, Inc. All rights reserved. 1 ACA Update Discussion

More information

Employer Shared Responsibility (ESR) Questions and Answers.

Employer Shared Responsibility (ESR) Questions and Answers. Employer Shared Responsibility (ESR) Questions and s. Recent ESR Questions asked by members of the accounting community, answered by senior members of Paychex Compliance Department. Question 1. When using

More information

IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES

IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES ATLANTA ASHEVILLE BIRMINGHAM CHICAGO DALLAS DENVER JACKSONVILLE LOS ANGELES MELBOURNE MEMPHIS MIAMI MINNEAPOLIS NEW YORK ORLANDO PHOENIX

More information

Health Reform in a Nutshell: What Small Businesses Need to Know Now.

Health Reform in a Nutshell: What Small Businesses Need to Know Now. Health Reform in a Nutshell: What Small Businesses Need to Know Now. With the passage of the most significant reform of America s modern-day health care system, many small business owners and human resources

More information

GAO SMALL EMPLOYER HEALTH TAX CREDIT. Factors Contributing to Low Use and Complexity. Report to Congressional Requesters

GAO SMALL EMPLOYER HEALTH TAX CREDIT. Factors Contributing to Low Use and Complexity. Report to Congressional Requesters GAO United States Government Accountability Office Report to Congressional Requesters May 2012 SMALL EMPLOYER HEALTH TAX CREDIT Factors Contributing to Low Use and Complexity GAO-12-549 May 2012 SMALL

More information

Welcome to 45R Small Business Health Care Tax Credit

Welcome to 45R Small Business Health Care Tax Credit Welcome to 45R Small Business Health Care Tax Credit Presented by the Oklahoma Society of Enrolled Agents and the Internal Revenue Service 1 IRC 45R Small Business Health Care Tax Credit The visual portion

More information

Federal Agencies Delay Nondiscrimination Requirements for Insured Group Health Plans under the Affordable Care Act

Federal Agencies Delay Nondiscrimination Requirements for Insured Group Health Plans under the Affordable Care Act The HR resource every business needs HR News Alert January 2011 Brought to you by: Progressive Management Associates Insurance Services In this Issue Nondiscrimination Requirements Delayed State Minimum

More information

The Patient Protection and Affordable Health Care Act and the Health Care and Education Reconciliation Act of 2010

The Patient Protection and Affordable Health Care Act and the Health Care and Education Reconciliation Act of 2010 The Patient Protection and Affordable Health Care Act and the Health Care and Education Reconciliation Act of 2010 Important Provisions for IAAPA Members May 24, 2010 The health care reform bill which

More information

So You Think Your Small Business Tax Credit Is Coming Soon?

So You Think Your Small Business Tax Credit Is Coming Soon? So You Think Your Small Business Tax Credit Is Coming Soon? Our Our webinar will will begin begin shortly shortly To To invite invite someone else else to to the the webinar, have have them them go go

More information

Navigating the New Health Insurance Environment

Navigating the New Health Insurance Environment Navigating the New Health Insurance Environment The Affordable Care Act and Professional Employer Organizations (PEOs) This white paper is an overview of eight building blocks of an effective small-business

More information

Tax Implications of Health Care Reform

Tax Implications of Health Care Reform Tax Implications of Health Care Reform Presented by: Art Sparks, CPA Partner Certified Public Accountants Summary Summary The Patient Protection and Affordable Care Act (PPACA) and the companion Health

More information

Healthy Business Chat 07/10/2014

Healthy Business Chat 07/10/2014 Healthy Business Chat 07/10/2014 1 What Is An Insurance Exchange? An Insurance Exchange is an organized marketplace for insurance plans to compete and offer services efficiently in the small group and

More information

SMALL EMPLOYER HEALTH TAX CREDIT Limited Use Continues Due to Multiple Reasons

SMALL EMPLOYER HEALTH TAX CREDIT Limited Use Continues Due to Multiple Reasons For Release on Delivery Expected at 10:00 a.m. ET Tuesday, March 22, 2016 United States Government Accountability Office Testimony Before the Subcommittee on Economic Growth, Tax and Capital Access, Committee

More information

Rose & Kiernan, Inc. December, 2015. IRS Notice 2015-87

Rose & Kiernan, Inc. December, 2015. IRS Notice 2015-87 BENEFITS ALERT Rose & Kiernan, Inc. December, 2015 IRS Notice 2015-87 The Departments of Treasury (IRS), Labor (DOL) and Health and Human Services (HHS) jointly issued a notice on December 16 th to clarify

More information

Pay or Play Penalty Special Rules for Temporary Staffing Firms

Pay or Play Penalty Special Rules for Temporary Staffing Firms Brought to you by Cottingham & Butler Pay or Play Penalty Special Rules for Temporary Staffing Firms The Affordable Care Act (ACA) imposes a penalty on large employers that do not offer minimum essential

More information

Health Reform in a Nutshell: What Small Businesses Need to Know Now.

Health Reform in a Nutshell: What Small Businesses Need to Know Now. Health Reform in a Nutshell: What Small Businesses Need to Know Now. With the passage of the most significant reform of America s modern-day health care system, many small business owners and human resources

More information

Tax Subsidies for Health Insurance An Issue Brief

Tax Subsidies for Health Insurance An Issue Brief Tax Subsidies for Health Insurance An Issue Brief Prepared by the Kaiser Family Foundation July 2008 Tax Subsidies for Health Insurance Most workers pay both federal and state taxes for wages paid to them

More information

Health Care Reform Where Are We Now? Preparing for 2015

Health Care Reform Where Are We Now? Preparing for 2015 Tuesday, July 1, 2014 2 3 p.m. Central time Health Care Reform Where Are We Now? Preparing for 2015 David Hunt, CHBC Senior Managing Consultant BKD, LLP dhunt@bkd.com Philip Floyd, CFP, CFS Senior Managing

More information

ADMINISTRATION RELEASES NEW GUIDANCE ON SMALL BUSINESS HEALTH CARE TAX CREDIT

ADMINISTRATION RELEASES NEW GUIDANCE ON SMALL BUSINESS HEALTH CARE TAX CREDIT ADMINISTRATION RELEASES NEW GUIDANCE ON SMALL BUSINESS HEALTH CARE TAX CREDIT May 17, 2010 Small Businesses May Receive Both State and Federal Tax Credits, Dental and Vision Coverage Eligible for Credit

More information

Affordable Care Act 101: What The Health Care Law Means for Small Employers

Affordable Care Act 101: What The Health Care Law Means for Small Employers Affordable Care Act 101: What The Health Care Law Means for Small Employers These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers should consult

More information

ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567

ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 WHAT HEALTH CARE REFORM MEANS FOR YOUR BUSINESS Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 The Patient Protection

More information

ACA REPORTING WEBINAR QUESTIONS AND ANSWERS

ACA REPORTING WEBINAR QUESTIONS AND ANSWERS ACA REPORTING WEBINAR QUESTIONS AND ANSWERS The following questions on ACA reporting requirements to the IRS were collected at a series of webinars offered by ThinkHR. Introduction The Affordable Care

More information

Health Care Law Implementation: What Nonprofits Need to Know WELCOME!

Health Care Law Implementation: What Nonprofits Need to Know WELCOME! Health Care Law Implementation: What Nonprofits Need to Know WELCOME! Health Care Law Implementation: What Nonprofits Need to Know (PPACA) Health Care Law Implementation: What Nonprofits Need to Know Heather

More information

ACA: Temporary and Variable Hour Employees Presented by: Larry Grudzien

ACA: Temporary and Variable Hour Employees Presented by: Larry Grudzien ACA: Temporary and Variable Hour Employees Presented by: Larry Grudzien We re proud to offer a full-circle solution to your HR needs. BASIC offers collaboration, flexibility, stability, security, quality

More information

Advisory. The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? April 2010. Impact on Employers

Advisory. The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? April 2010. Impact on Employers certified public accountants business consultants Advisory April 2010 The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? The recently passed Patient Protection and Affordable

More information

Things Small Businesses Need To Know About Health Care Reform

Things Small Businesses Need To Know About Health Care Reform 7 Things Small Businesses Need To Know About Health Care Reform Make sure your business meets the requirements of the Affordable Care Act on schedule 7 Things Small Businesses Need To Know About Health

More information

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage By Seth Perretta, Joel Wood and Matthew Fornataro of Crowell & Moring LLP On March 29, 2011, the

More information

business owner issues and depreciation deductions

business owner issues and depreciation deductions business owner issues and depreciation deductions Individuals who are owners of a business, whether as sole proprietors or through a partnership, limited liability company or S corporation, have specific

More information

2015 Relief for Reimbursing Employees for Health Insurance Information is current as of May 29, 2015

2015 Relief for Reimbursing Employees for Health Insurance Information is current as of May 29, 2015 1 Q: I understand there is an exception for one employee/participant. If I'm the employee, can a 105 be used to reimburse for my spouse or dependents as well? A: Yes. Pursuant to 105, a plan can reimburse

More information

Sandy Wood, CEBS (Certified Employee Benefit Specialist) Healthcare Consultant sandy@thebenefitsacademy.com 206-669-3345

Sandy Wood, CEBS (Certified Employee Benefit Specialist) Healthcare Consultant sandy@thebenefitsacademy.com 206-669-3345 1 Sandy Wood, CEBS (Certified Employee Benefit Specialist) Healthcare Consultant sandy@thebenefitsacademy.com 206-669-3345 2 Terms you need to know Required Notices 2014 Plan Requirements The Grandfathered

More information

Health Care Reform: Ready or Not, Here it Comes! Presented by:

Health Care Reform: Ready or Not, Here it Comes! Presented by: Broader Perspective. Business Solutions. Health Care Reform: Ready or Not, Here it Comes! Presented by: Ryan Fridborg, MAOD, SPHR Executive Vice President, Employee Benefits rfridborg@boltonco.com Marilyn

More information

Department of the Treasury

Department of the Treasury Vol. 78 Wednesday, No. 1 January 2, 2013 Part V Department of the Treasury Internal Revenue Service 26 CFR Parts 1, 54 and 301 Shared Responsibility for Employers Regarding Health Coverage; Proposed Rule

More information

IRS Eases Employers Into Employer Mandate

IRS Eases Employers Into Employer Mandate IRS Eases Employers Into Employer Mandate February 2014 The Treasury and Internal Revenue Service (IRS) released final regulations on the employer mandate under the Patient Protection and Affordable Care

More information

The Affordable Care Act: Summary of Employer Requirements

The Affordable Care Act: Summary of Employer Requirements The Affordable Care Act: Summary of Employer Requirements February 2013 Disclaimer Any US tax advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding

More information

What s News in Tax Analysis That Matters from Washington National Tax

What s News in Tax Analysis That Matters from Washington National Tax What s News in Tax Analysis That Matters from Washington National Tax The Impact of the Affordable Care Act on International Assignees and Their Health Care Plans Employers and individuals in the United

More information

Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013

Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013 Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013 Shelly Winson for Benefits Compliance Link Team Karli Dunkelberger VP Business Development 949-702-3412

More information

Affordable Care Act 101: What The Health Care Law Means for Small Businesses

Affordable Care Act 101: What The Health Care Law Means for Small Businesses Affordable Care Act 101: What The Health Care Law Means for Small Businesses December 2013 These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers

More information

Summary of Provisions Affecting Employer-Sponsored Insurance

Summary of Provisions Affecting Employer-Sponsored Insurance JULY 2014 AFFORDABLE CARE ACT Summary of Provisions Affecting Employer-Sponsored Insurance Much of the public discussion about the Affordable Care Act (ACA) has focused on the expansion of coverage to

More information

Health Care Reform (HCR)

Health Care Reform (HCR) Health Care Reform Effects on the Wood County Employee Health Benefits Plan For Plan Year 2013 Employee Health Benefits Committee October 18, 2012 1 Health Care Reform (HCR) Affordable Care Act (ACA) The

More information

American employers need prompt action on these six significant challenges. We urge Congress and the administration to address them now.

American employers need prompt action on these six significant challenges. We urge Congress and the administration to address them now. In June 2014, the Board of Directors of the American Benefits Council (the Council) approved a long-term public policy strategic plan, A 2020 Vision: Flexibility and the Future of Employee Benefits. It

More information

Sample Employee FAQs Explaining Benefits Eligibility

Sample Employee FAQs Explaining Benefits Eligibility Sample Employee FAQs Explaining Benefits Eligibility To assist employers in providing an explanation to their employees of how measurement, administrative, and stability periods will be used to determine

More information

Affordable Care Act: What The Health Care Law Means for Small Businesses

Affordable Care Act: What The Health Care Law Means for Small Businesses Affordable Care Act: What The Health Care Law Means for Small Businesses August 2013 Indian Country Business Summit These materials are provided for informational purposes only and are not intended as

More information

Health Care Reform 2015 Update

Health Care Reform 2015 Update Health Care Reform 2015 Update Presented to: Employee Health Benefits Committee Presented by: Pamela A. Boyer Information is current as of time of presentation: Oct. 15, 2015 1 Overview of Presentation

More information

Health Care Reform: Health Plans Overview. Presented by: Brian Lenzo, Preferred Benefits Services

Health Care Reform: Health Plans Overview. Presented by: Brian Lenzo, Preferred Benefits Services Health Care Reform: Health Plans Overview Presented by: Brian Lenzo, Preferred Benefits Services Agenda What is the legal status of the law? Which plans must comply? Grandfathered plans Reforms currently

More information

COMMENTARY. Deciding Whether to Play or Pay Under the Affordable Care Act. Q&A 1: What Is the Employer Mandate? JONES DAY

COMMENTARY. Deciding Whether to Play or Pay Under the Affordable Care Act. Q&A 1: What Is the Employer Mandate? JONES DAY march 2013 JONES DAY COMMENTARY Deciding Whether to Play or Pay Under the Affordable Care Act The Patient Protection and Affordable Care Act (the ACA ) adds a new Section 4980H to the Internal Revenue

More information

Tax Items For Businesses Ohio Tax Law Changes

Tax Items For Businesses Ohio Tax Law Changes FRUSH & ASSOCIATES, INC. OVERVIEW Recap of 2013 ACA Act NII Surtax Medicare Wage Surtax Tax Items For Businesses Ohio Tax Law Changes Circular 230 Disclosure Pursuant to the rules of professional conduct

More information

http://www.iwpubs.com/articlemanagement/articlemanagementarticlepreview.asp?isarc...

http://www.iwpubs.com/articlemanagement/articlemanagementarticlepreview.asp?isarc... Page 1 of 6 7 Things To Know About Employer-Provided Health Insurance October, 2013 Benefits Pro No one agrees on the exact numbers, but it s a safe bet to say that over the next few years millions of

More information

INTRODUCTION. Penalties waived until 6/30/15? Description of Payment/Reimbursement Arrangement: Employer with 50 or more FTEs

INTRODUCTION. Penalties waived until 6/30/15? Description of Payment/Reimbursement Arrangement: Employer with 50 or more FTEs The purpose of this publication is to present highly focused information on the healthcare reimbursement aspects of the Affordable Care Act (ACA) based on the information available as of the date of this

More information

IRS Issues final regulations on employer shared responsibility requirements

IRS Issues final regulations on employer shared responsibility requirements IRS Issues final regulations on employer shared responsibility requirements Volume 37 Issue 46 April 17, 2014 The employer shared responsibility requirements commonly called the employer mandate are one

More information

DETERMINING FULL-TIME EMPLOYEE STATUS Employer Shared Responsibility Under the Affordable Care Act (ACA)

DETERMINING FULL-TIME EMPLOYEE STATUS Employer Shared Responsibility Under the Affordable Care Act (ACA) DETERMINING FULL-TIME EMPLOYEE STATUS Employer Shared Responsibility Under the Affordable Care Act (ACA) What employers need to know to make informed decisions about ACA compliance This document is intended

More information

FAQ: Health Care Reform and Minnesota s Nonprofit Employers

FAQ: Health Care Reform and Minnesota s Nonprofit Employers FAQ: Health Care Reform and Minnesota s Nonprofit Employers Minnesota s health insurance landscape has been undergoing some significant improvements, leading to better and more affordable coverage for

More information