|
Employer Mandate |
Sec.1513
See the entire law
The employer Mandate is also called Employer
Responsibility.
The employer mandate requires
that employers with fifty(50) or more full-time employees
to provide health care coverage to their employees or
pay a penalty.
A business with fifty(50) or more
employees that do not offer them health care insurance
will be fined $2,000 per employee. The fine will
be calculated on the total number of employees minus
thirty(30). For example, a business with 60
employees will be fined as such, $2,000 x (60-30) =
$60,000.
The mandate will add $1.79 or more per
hour to the cost of a full-time employee.
Employers who chose not to provide the mandated coverage
will see their labor cost go up above 98 cents per hour.
|
|
Automatic Enrollment |
Sec.1511
See the entire law
Employers with more than 200 full-time
employees must automatically enroll their employees into
health care plans. Employees can opt out, but
employers cannot. |
|
Employer Voucher/Free Choice Voucher |
Employers will be allowed to offer their
lower paid employees vouchers that they can use to get
insurance on a state exchange that they can afford.
This provision was repealed
in April 2011. |
|
Small Business Tax Credit |
Sec.1421
See the entire law
This program will end in 2016.
According to the
IRS
small businesses with 25 or less employees with an average
salary of $50,000 or less can earn credits if they
provide at least 50% coverage of the premium for their
employees. The credit is 35% of the employer's
cost.
See the IRS web page on Small
Business Tax Credit. |
|
Part-Time Workers |
Sec. 1513
See the entire law
The act defines part-time workers as those
working fewer than 30 hours a week. However, since
Section 1513 of the law gives the HHS Secretary the
power to define what is part-time work the definition
can change. |
|
Small Business Health Insurance
Options Program (SHOP) |
|
Sec.1311
See the entire law
SHOP
Marketplace. SHOP is a health
insurance exchange for businesses with 50 or less
employees. Small businesses will be allowed to buy
health insurance through SHOP.
Starting in 2017 states will be allowed to open SHOP to
larger businesses.
Starting in 2014 small businesses will be able to get
tax credits through SHOP. |
|
Mini-Med Plans |
Sec.2711
See the entire law
Effective September 2010.
Mini-med
plans caps what an insurer has to pay out if you get
sick. There is an annual cap and a lifetime cap.
Annual caps will be raised to $2 million in September
2012 and eliminated in January 2014.
Mini-meds
were used by small businesses to lower the cost of
providing health care to their employees. This
enabled themt o offer top managers or valued employees
with fancier health care insurance.
Under the new
law the same plan must be offered to all employees. |
|
Employer Sponsored Insurance |
Sec.9001
See the entire law
The
ACA amended the Internal Revenue Code of 1985 to impose
a 40% tax on any excess coverage for employer sponsored
insurance. |
|
Medicare Tax Hike |
|
Sec.9015
See the entire law
Currently the Medicare Tax rate is 2.9% with both
employer and employee paying 50% each (or 1.45% each).
The employer contribution will remain unchanged, but
high earning employees will see an increase of 2.35%.
High earners are individuals who earn more than $200,000
a year and couples who earn more than $250,000 per year.
Medicare tax on unearned income will rise
to 3.8%. Unearned income includes investments such
as stocks, bonds, real estate, dividends, etc.
Under certain circumstances the sale of your primary
residence could fall into this category. This tax
is applied in addition to capital gains tax.
Visit the IRS Q&A web page on Medicare Tax.
See the IRS proposed Regulation. |
|
Tanning Salon Tax |
The IRS
See the entire law
According to the
IRS
beginning 1 July 2010 businesses offering indoor tanning
services are required to collect a 10% excise tax on the
tanning service they provide. The tax must be
filed quarterly on IRS Form 720. Service providers
should collect the 10% tax at the time the purchaser
pays for the service.
The
tax must be filed:
- April 30
- July 31
- October 31
- January 31 |
|
Pharmaceutical Tax Hike |
|
Sec.9008
See the entire law
According to the IRS the ACA
created an annual fee payable beginning in 2011 by
certain manufacturers and importers of branded name
pharmaceuticals.
See temporary regulations
issued by the IRS. |
|
Medical Device Tax Hike |
Sec.9009
See the entire law
A 3% tax hike will be imposed on the
manufacture or importation of medical devices.
|
|
Health Insurance Companies Tax Hike/Cadillac Plan Tax |
Sec.9010
See the entire law
This tax goes into effect in 2018.
A
40% tax rate will be imposed on insurance companies that
sell health plans that cost more than $16,300 for an
individual or $27,500 for a family. |
|
National Labeling |
Sec. 4205
See the entire law
The law will require all chain
restaurants with 20 or more locations and vending
machine operators to post caloric information next to
every food or beverage items. |
|
Breast Feeding Allowance |
Sec.4207
See the entire law
The
new law amends the Fair Labor Standards Act of 1938 to
force employers to provide a reasonable break time and a
place other than a bathroom that is shielded from view
and free from intrustion in order for mothers to breast
feed their new born for up to one year. |
|
W-2 Reporting |
The IRS
See the entire law
According to the
IRS
employers have to start reporting their contribution as
well as the contribution by their employees onthe W-2
form in Box 12 (with Code DD to identify the amount). |
|
Employee Notification |
Sec.1512
See
the entire law
The
new law amends the Fair Labor Standards Act of 1938 to
require employers to notify their employees of coverage
options available to them through the Marketplace
(Exchanges).
Visit the
Department of Labor (DOL)
web page to information and forms to use in providing
that notification. |
