Articles

The Affordable Healthcare Act and What it Means for Employers by Adam Cohen


Posted on July 16, 2013 by Adam Cohen

 

We recently published detailed white paper that outlines the personal and employer requirements associated with healthcare reform. The paper covers the new Medicare tax, coverage requirements, minimum standards and potential fines. If you are interested in receiving a copy of the report, please e-mail info@bpbcpa.com. 

With six months to go before the Affordable Healthcare Act kicks in, we find that many employers are still confused about the rules and penalties related to providing health insurance.

Beginning in 2015 (a delay from the original deadline of 2014 which was announced  on July 2, 2013) companies with more than 50 employees who work 30 or more hours per week face penalties of up to $2,000 per employee if they do not offer insurance coverage. These parameters mean that 96 percent of all employers are exempt from these rules.

Large businesses that comply with the mandate can still be fined if their plans cost workers more than 9.5 percent of their income or if their insurance doesn’t cover at least 60 percent of medical costs.

One state health exchange employee notes that companies with fewer than 25 workers that offer insurance may qualify for tax credits. At Berkowitz Pollack Brant we are watching the issue closely and monitoring states in which our clients are headquartered for information about insurance exchanges. If you have questions, don’t hesitate to call us.

 

About the Author: Adam Cohen, CPA, is an associate director in the Tax Services practice of Berkowitz Pollack Brant. For more information, call (954) 712-7000 or e-mail info@bpbcpa.com.