Healthcare Reform Requirements – an Employer’s Perspective

There are several changes that employers will be implementing this coming year as a result of the Healthcare Reform act (often called Obamacare). These changes affect workers, but they also affect employers.

Following are questions some employer’s are asking about Reform Requirements in 2013.

Summary of Benefits and Coverage (SBC)

Q. What is it?

A.  The SBC replaces the Plan Summaries employers and employees are used to getting from their carriers, which explain the terms of their coverage. The SBC will provide employees with details of coverage, limitations, etc. in a certain specified, uniform format that all carriers must follow. 

Click here to see a Sample SBC template.

 

Q. Where does an employer get the SBC’s?

A. The employer’s insurance company, referred to as the “issuer,” began sending the SBC’s directly to employers for distribution beginning September 23, 2012.

Q. What must an employer do with the SBC’s they receive from the carrier?

A.  SBC’s must be distributed to all currently enrolled employees on a firm’s first day of open enrollment after September 23, 2012 or to new enrollees beginning on the first day of the firm’s plan year following September 23, 2012.

Note: More information about SBC’s can be found here.

W-2 Reporting Coverage Reporting Requirement

Q.  Who must report the cost of an employee’s coverage on employee W-2 forms issued after January 1, 2013.

A.  Employers with 250 or more W-2 forms, who provide coverage under a group health plan, are required to report.

 

Q. What about employers filing fewer than 250 W-2 forms?

A.  The reporting requirement for employers with fewer than 250 W-2 forms will not apply for future calendar years until the IRS publishes guidance giving at least six months advance notice of any change in this “transition relief.”

 

Q. What coverage must be reported?

A. Major Medical, Health FSA's and certain other coverage.  Click here for more details:  http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.

Note: Click here for more FAQs from the IRS regarding the W-2 reporting requirement.


Health Flexible Spending Account Limits

Q. What is the maximum Contribution limit to a Health FSA for medical expenses beginning January 1, 2013?

A. $2500 increased annually by the cost of living adjustment.

 

Q. What is the limit if both spouses are enrolled in a Health FSA?

A. Each spouse may contribute $2500 even if both spouses participate in the same Health FSA under the same employer.

Q. Does the $2500 contribution limit apply to Flex Credits?

A. The $2500 limit does not apply to Flex Credits.

 

Q. Does the $2500 limit apply to contributions for dependent care assistance?

A. The law does not limit the amount of salary reduction contributions for dependent care assistance, an employee’s share of health coverage premiums, salary reduction or any other contributions to HSA’s, or to amounts made available by an employer to an HRA.

 

For IRS guidance and details on the $2500 limit and IRS FAQ go to http://www.irs.gov/pub/irs-drop/n-12-40.pdf

Here is a link to a Health Reform Implementation Timeline published by the Henry J. Kaiser Family Foundation Health Reform Resource – it’s a helpful list of which laws are being implemented, and when: http://healthreform.kff.org/timeline.aspx.

 

Your trusted advisors at Brigante, Cameron, Watters and Strong are here to help with the year-end planning that will ensure your business' growth and profitability in the coming year.

Information compiled by Bruce Langdon.

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Are You On Top Of Your 2012 Tax Deadlines?

This is the time of year when accounting offices ramp up from "normal busy" to "year-end planning" busy.

The deadlines start crowding together, fast and furious in September, all moving steadily toward next April's 2012 Tax Day.

The time to schedule with your accountant is now, before the year-end, and any possible pre-January 1 tax savings, have passed you by.

To assist you with planning, BCWS has gathered all the important Federal 2012 deadlines below:

September

Mon 10	Employers: Employees are required to report to you tips of >=$20 earned during August.
Mon 17	Deposit payroll tax for Aug if the monthly deposit rule applies.
Mon 17	Individuals: Pay the third installment of your estimated tax for 2012.
Mon 17	Partnerships: File 2011 Form 1065 if you timely requested a 5-month extension.
Mon 17	Corporations: File calendar year 2011 Form 1120 or 1120S if you timely requested a 6-month extension.
Mon 17	Deposit third installment of your 2012 estimated tax.

October

Mon 1	File Form 730 and pay tax on wagers accepted during August.
Mon 1	File Form 2290 and pay the tax for vehicles first used during August.
Wed 10	Employers: Employees required to report to you tips of >=$20 earned during September.
Mon 15	Deposit payroll tax for Sep if the monthly deposit rule applies.
Mon 15	Individuals: File 2011 Form 1040, 1040A, or 1040EZ if you requested a 6-month extension.
Mon 15	File 2011 Form 5500 if you timely requested an extension on Form 5558.
Wed 31	File Form 720 for the third quarter of 2012.
Wed 31	File Form 730 and pay tax on wagers accepted during September.
Wed 31	File Form 2290 and pay the tax for vehicles first used during September.
Wed 31	File Form 941 for the third quarter of 2012.
Wed 31	Deposit FUTA owed through Sep if more than $500.

November

Tue 13	Employers: Employees required to report to you tips of >=$20 earned during October.
Tue 13	File Form 941 for the third quarter of 2012 if you timely deposited all required payments.
Thu 15	Deposit payroll tax for Oct if the monthly rule applies.
Fri 30	File Form 730 and pay tax on wagers accepted during October.
Fri 30	File Form 2290 and pay the tax for vehicles first used during October.

December

Mon 10	Employers: Employees required to report to you tips of >=$20 earned during November.
Mon 17	Corporations: Deposit the fourth installment of your estimated tax for 2012.
Mon 31	File Form 730 and pay tax on wagers accepted during November.
Mon 31	File Form 2290 and pay the tax for vehicles first used during November.

The information here was culled from Tax.gov's Important Tax Dates for Small Business calendar. For a complete resource for all the Federal Tax Developments for 2012, click here. BCWS wants to keep as much money as possible in your pocket.

If you have any questions about these deadlines, or any other tax issues, please contact our office.

BCWS would like to connect with you!
Please come join us at:

Our BCWS Blog or
Our Website On Facebook

BCWS’s Company Profile on LinkedIn
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