Reporting Requirements and Tax Increases Under the Affordable Care Act
Lost in the storm after the Supreme Court’s recent decision on the Affordable Care Act (ACA) is the fact that the Act includes several important provisions that either remain in effect for 2012 or go into effect in 2013 and 2014. These provisions are outlined below:
- Ongoing disclosure and reporting requirements, including w-2 reporting of the value of individual insurance coverage for 2012
- Medical Loss Ratio (MLR) rebates – some employers who sponsor insured group health plans will begin receiving rebate checks from their carriers in the coming weeks
- Beginning in 2013, an additional 0.9% Medicare payroll tax on high income earners. High income earners are defined as individuals, filing separately, with earned income over $200,000 and joint filers with earned income over $250,000. The additional tax only applies Continue reading »
Supreme Court Upholds Affordable Care Act
On June 28, 2012, the Supreme Court narrowly voted to uphold the majority of the Affordable Care Act (“the Act”). In the end, the basis for the decision was the federal government’s authority to tax. Under the Act, certain individuals that do not elect health insurance coverage must pay a financial penalty. This is commonly referred to as the Individual Mandate component of the Act. Five of the justices agreed that, while President Obama has taken great care to stay clear of the word “tax” in his healthcare reform efforts, such a financial penalty may reasonably be characterized as a tax. While the “tax” versus “penalty” debate makes for good TV, it remains to be seen how relevant it is to the overall healthcare reform debate. Surely from now until the Presidential election in November, the Democrats’ position Continue reading »
Are You Interested in an SBA Loan? Good News Could Be Coming Your Way
Small business owners, some minor relief may be in sight in the form of government loans. On July 23, 2010, the Small Business Lending Fund Act cleared a key senate vote to end debate and move forward. The bill includes business tax break and enhancements to the Small Business Administration (SBA) loan programs. The House has already passed a version of the bill. The Fund would invest in small banks (less than $10 billion in assets) by purchasing preferred stock. The stock would charge interest rates ranging from 1% to 7% depending on how much Continue reading »
