Health Care Notice

Patient Protection & Affordable Care Act - Affordable for Whom?

In any business circles today the current buzz is about the new health care bill. How does this affect you, the small business owner, and when? Here's a brief outline of effective dates and the impact to businesses for a few of the many changes coming.

•  (Eff 1/1/2010) Small Employer Credit - up to 35% credit of premiums paid by

            employer if:

               1. Employ < 25 full time equivalent employees (phase out applies)

               2. Average wage is < $50,000 (may exclude owners and their family)

               3. Employer pays at least 50% of premium cost

               4. Premium per employee capped at AZ benchmarks ($4,495 individual/

                   $10,239 other)

• (Eff 3/30/2010) Employer health plan must offer coverage to any child of
employee up to age 27 (only affects coverage offered, not employer's contribution)

• (Eff 1/1/2011) W-2s must report employer's contribution for employee's health
insurance payments

• (Eff 1/1/2012) Forms 1099 to be filed on ALL payments in excess of $600 to
ANY type entity (for filings due 1/31/2013)

• (Eff 1/1/2013) Medicare Tax Increase - individual withholding only on wages
over $200,000 - new effective rate = 2.35% - no employer match on the increase

• (Eff. 1/1/2014) Mandated coverage by "large" employers (if you employ an
average of 50 employees working 30 or more hours per week)

The above listing does not encompass minor provisions or the "individual level" changes which include a NEW 3.8% Medicare Tax on investment income of those with adjusted gross income in excess of $125,000 individual/$250,000 married.