Healthcare Changes Effecting Small Business

Healthcare Changes Effecting Small Business

On April 20, 2010, Posted by , In construction,contractors,health care,subcontractors, With No Comments

(Ameriprise FinancialQualifying employers who pay at least 50% of the cost of their employees’ health insurance premiums may receive a tax credit to make coverage more affordable. The credit amount will depend on the size of the business, the number of employees and the average annual wages paid. For example, if you employ no more than 25 individuals with an average annual wage of less than $50,000, and you contribute at least 50% of the premium cost, you may be eligible for a tax credit up to 35% of that contribution. This tax credit will be even more substantial in 2014 — for up to 50% of the contribution amount.
One additional change in 2010: Beginning July 1, the law will impose a 10% tax on the amount paid for indoor tanning services.
More provisions will take effect in subsequent years. Here are some of the measures that may affect you:
  • Beginning in 2011, over-the-counter medicines are not eligible for reimbursement under a health flexible spending account, health reimbursement account or health savings account without a doctor’s prescription.
  • In 2011, a national program will be established to provide limited reimbursement for long-term care expenses for individuals who participate by contributing to the program’s cost through voluntary payroll deductions.
  • Contributions to a health flexible spending account will be limited to $2,500 per year beginning in 2013. The limit will be indexed in future years.
  • Starting in 2013, the tax for Medicare Part A (hospitalization coverage) increases 0.9% for individuals with earnings, such as wages and self-employment income, exceeding $200,000, and for couples with joint earnings greater than $250,000. Also, high-income taxpayers will be subject to a new 3.8% Medicare contribution on unearned income, such as interest, dividends, nonqualified annuities and net gain from the disposition of property rental income but not including income from an active trade or business.
  • Beginning in 2013, the threshold for itemized deductions for qualified medical expenses will be increased from 7.5% of adjusted gross income (AGI) to 10% of AGI, though a temporary exception will be maintained for those 65 and older (until 2017).
  • U.S. citizens and legal residents will be required to have health insurance by 2014, with some exceptions. Those without insurance will face a tax penalty of as much as 2.5% of taxable income in 2016 and thereafter.
  • Starting in 2014, waiting periods for coverage under self-insured and fully insured plans cannot extend beyond 90 days, and insurers will not be able to deny coverage or charge higher premiums to people based on their health status and gender.
  • Beginning in 2010, adults with pre-existing conditions will be able to purchase coverage from temporary high-risk pools until 2014, when coverage cannot otherwise be denied for pre-existing conditions.  Read More
Construct Corps is a construction staffing company specializing in providing contractors with local skilled labor nationwide.
Construct Corps’ unique centralized recruiting/qualification systems allow contractors to utilize a local workforce in almost any
location at price that fits their budget. Go to http://www.constructcorps.com for more information or call 866.532.6777.

Leave a Reply

Dreamhost review