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 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 results in 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 impact on or earlier than January 1, 2014, related to HSA account distributions. The Cadillac tax on rich health plans will begin then as well; however, possibly one of the most awesome taxes will increase, starting 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 institutional medical insurance, your plan will cast off lifetime caps on Essential Health Benefits (EHBs). As discussed previously, EHBs may be similarly defined with the aid of Health and Human Services. It is assumed that EHBs will include specific wellness, outpatient, and hospitalization advantages.
All medical health insurance plans must offer these advantages and can’t place caps on how lots can be paid out underneath the project. A few of the EHBs must be provided distinct from a plan deductible, such as routine bodily checks. The most crucial problem for small corporations is the 35% tax credit score for the tax year 2010.
This credit is available through tax for 12 months of 2013 if the employer contributes 50% of the top-class price. The debate remains on whether the 50% contribution price should follow dependents’ premiums. The more significant the business becomes, the smaller the credit. Consultation with a knowledgeable tax expert is recommended.