ObamaCare. Love it or hate it, the odds are you are not totally clear on how it impacts you and your business. Whatever our opinions are of this major healthcare reform, I know we can all agree: its good to be fully aware of the changes so we can be proactive.
Lets take a look at some of the ways it may already be part of your life.
1. Small Business Tax Credits
As an incentive to provide coverage, small companies can currently benefit…
- 1-10 workers & average annual wages of $25,000 or less: Receive a credit of up to 35% of your health premium costs through 2013.
- 11-24 workers & wages of $25,001-$49,999: credit decreases based on a sliding scale.
- 25 workers & $50,000 +: No credit.
2. Reporting Health Care Benefits
- Employers are required to report the value of health care benefits provided on their workers’ 2012 W-2s (reporting on the 2011 W-2s was optional). However, the amount reported is not taxable income.
3. Special Healthcare Accounts
- HSA Penalty: Taking a non-qualified distribution from your health savings account now means a doubled penalty of 20%.
- Over-the-counter medications may not be purchased with funds from flexible spending accounts, health reimbursement agreements or health savings accounts.
4. Insurance Coverage for Children Under 26
- Young adults under 26 may be covered under their parent’s plan even if they are married or are financially independent.
The changes up to now have been relatively minor, but they will get more aggressive next year.
Next blog: ObamaCare and Me: Get Ready For 2013
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As always, I am here to help you determine how you can make the most of these changes. Give me a call today!