New IRS laws make it possible for employers to roll over leftover funds in healthcare flexible spending accounts into the next year for the first time. While this is good news overall for small business owners, like most IRS regulations it comes with confusing caveats. CCH Principal Federal Tax Analyst Mark Luscombe clears up key decisions related to this change that employers will need to make this year.
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Health insurance carriers have always had multiple plans to choose from, but a lot of post-Obamacare plans will look different than what small businesses have seen historically. Costs will go up for some companies and down for others. Excell Benefit Group Owner Rich Fahn reinforces the idea that there’s never one coverage answer for everyone.
Is the healthcare plan you’re offering affordable? Rich Fahn, owner of Excell Benefit Group, demonstrates the complexity of this seemingly simple question and encourages small business owners to consult brokers or consultants with tools to help them meet Affordable Care Act criteria.
Many small business owners are concerned about penalties they could face if they are not Affordable Care Act-compliant. One common apprehension is correctly distinguishing part-time from full-time employees. Mark Luscombe, principal federal tax analyst at CCH, presents information to ensure employers with over 50 workers are offering at least the minimum essential coverage and are able to compete with the healthcare exchange to avoid fees.
How many employees must you have to be eligible for an insurance tax credit? Do their average wages matter? CCH Principal Federal Tax Analyst Mark Luscombe lays out the numbers.
From a taxation perspective, the Affordable Care Act is easier to understand when it is broken down to its four main fundamentals. Mark Luscombe, principal federal tax analyst at CCH, puts the individual and employer tax credits and mandates in plain English and presents business owners with the relevant compliance dates they need to know going into 2014.
Health insurance subsidy and tax credit amounts are based on the coverage option with the second-lowest deductible, the silver plan. However, if employers choose to make a defined contribution to their employees’ healthcare, it does not mean individuals are ineligible for the high-cost platinum option. Country Financial’s Matt Johnston outlines the financial risk employees face with each of their four plan options.
Do your employees qualify for a government health insurance subsidy? If they are paying more than 9 1/2 percent of their income, it is very likely. Blue Cross Blue Shield Senior Vice President for Markets Kevin Cassidy clarifies the criteria and what they mean for the plan you should offer.
As a business owner, you know health insurance is on your employees’ radar more than ever. The question now is, should you choose a group plan or invite workers into the individual marketplace? Matt Johnston of Country Financial presents the options you have, and suggests that in some instances businesses and employees are better off making choices on an individual basis, as long as they understand all the legal and financial issues involved.
In the past, insurance costs for employers were largely dependent on the medical history of their employees. Matt Johnston of Country Financial explains that post-Obamacare the only kinds of underwriting for coverage are age, tobacco use and location. By understanding these factors, as well as the way states are divided into districts, business owners can get a good idea of what they will need to spend.