Dental & Health Care Archives - Page 7 of 8

Be prepared for the health care act’s “play or pay” provision

rlewis on May 7, 2013

The Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” is scheduled to take effect Jan. 1, 2014. It doesn’t require employers to provide health care coverage, but it in some cases imposes penalties on larger employers that don’t offer coverage or that provide coverage that is “unaffordable” or that doesn’t provide “minimum value.”

A large employer is one with at least 50 full-time employees, or a combination of full-time and part-time employees that’s “equivalent” to at least 50 full-time employees. The nondeductible penalties generally are $2,000 per full-time employee.

Although the shared responsibility provisions don’t take effect until 2014, employers will use information about the workers they employ in 2013 to determine whether they’re subject to the provisions and face the potential for penalties in 2014. The rules are complex, so contact us today to learn how they may affect your business and what steps you can take to avoid, or at least minimize penalties.

Two Clients Recognized for Promoting Health of Their Employees

rlewis on April 23, 2013

Two clients were recognized in Columbus Business First’s inaugural Healthiest Employers of Central Ohio Awards Program. Award recipients offer health and wellness initiatives that promote a culture of staying active, eating right, managing stress and offering preventative disease screenings.

Hondros College was honored among the medium employers (101 to 500 employees) and Portfolio Creative was recognized among the small employers (two to 100 employees).

Employees of the companies who applied to participate in the awards program completed a health assessment survey and the company completed a questionnaire that covered six key areas of workplace wellness: culture and leadership; commitment, foundational components; strategic planning; communications and marketing; programming and interventions; and reporting and analysis.

All of the award recipients were featured in a supplement to the March 29 Business First.

Lower FSA contribution limit may make HSAs more attractive

mnarog on March 27, 2013

Previously, employers could set whatever limit they wanted on employee contributions to Flexible Spending Accounts (FSAs) for health care. But starting this year, the maximum limit is $2,500.

If you’re concerned about a lower limit and aren’t contributing to a Health Savings Account (HSA), look into whether you’re eligible — you must be covered by a qualified high-deductible health plan. As with FSA withdrawals, HSA withdrawals for qualified medical expenses are tax-free. But the HSA contribution limits are higher: $3,250 for self-only coverage and $6,450 for family coverage, plus an additional $1,000 for taxpayers age 55 or older.

HSAs also may be more beneficial because they can bear interest or be invested and can grow tax-deferred similar to an IRA. Additionally, you can carry over a balance from year to year. If you have an HSA, however, your FSA is limited to funding certain “permitted” expenses.

An HSA also can provide a way to do some post-Dec. 31 tax planning: You have until the April filing deadline to make your contribution. Please contact us to learn whether you could benefit from an HSA.

With Election Results In, What's Next for Tax Law Changes?

mnarog on November 8, 2012

President Obama has been reelected, the Senate will remain in the hands of the Democrats (but without a filibuster-proof supermajority) and the House will continue to be controlled by the Republicans. In other words, the political makeup of Washington will be about the same in 2013 as it is now. As a result, it’s still very uncertain what will happen with tax law changes.

When it comes to tax law, Congress and the president have much to address, including tax breaks that expired at the end of 2011 as well as the rates and breaks that are scheduled to expire at the end of this year.

The “lame duck” session is scheduled to begin next week, but Congress will soon break again for Thanksgiving. How long it will be in session from after Thanksgiving through the end of the year is up in the air.

It’s still unclear what Congress will try to accomplish in the lame duck session — and what they’ll punt to next year. (In terms of the latter, tax law changes could be made retroactive.)

The lack of change in the political makeup of Washington could make it very difficult to pass tax legislation, considering how far apart the parties are on what should be done. Yet now that both parties know the outcome of the Nov. 6 elections, they may be more willing to compromise.

Whatever happens, it could have an impact on your year end tax planning. So keep an eye on Congress before implementing year end strategies.

Image courtesy of www.freedigitalphotos.net.

Category: Dental & Health Care

News & Tech Tips

Be prepared for the health care act’s “play or pay” provision

Lower FSA contribution limit may make HSAs more attractive

With Election Results In, What's Next for Tax Law Changes?