Health Care Reform – How Are You Affected? – Part three
Suppose you’re an enterprise with fewer than 50 full-time and “full-time equivalent” (FTE) employees. In that case, you will revel in the posh of being exempted from the most arduous provisions discussed within the preceding article. If you offer health insurance coverage to your personnel, you may nevertheless have some problems affecting your fitness plan.
Effective for tax 12 months 2013, a further Medicare Part A tax of 0.9% could be assessed on earning above $200,000 for individuals or $250,000 for joint filers. This works out to a sixty-two % growth over the modern Medicare tax fee of one. Forty-five %. Another tax of three.Eight% will be assessed in opposition to unearned earnings for “excessive income” taxpayers.
Other taxes will move into the impact on or earlier than January 1, 2014, related to HSA account distributions. The so-called Cadillac tax on rich health plans will begin then as well, however possibly one of the most awesome taxes will increase indeed started March 23, of this 12 months. All tanning mattress operators started out paying an additional 10% tax surcharge for purchaser condominium of tanning beds. If you provide institution medical insurance, your plan will cast off lifetime caps on Essential Health Benefits (EHBs). As became discussed previously, EHBs may be similarly defined with the aid of Health and Human Services. It is assumed EHBs will include specific wellness, outpatient, and hospitalization advantages.
All medical health insurance plans need to offer these advantages and can’t place caps on how lots can be paid out underneath the project. A few of the EHBs can be required to be provided distinct of a plan deductible, such as routine bodily checks. The most crucial problem for small corporations is the 35% tax credit score to be had for the tax year 2010. This credit is available through tax 12 months 2013 if the employer contributes 50% of the top class price. The debate remains whether the 50% contribution price ought to follow dependents’ premiums as well. The significant the business turns into, the smaller the credit turns into. Consultation with a knowledgeable tax expert is recommended.