Tag: small business health insurance

Beware of Fake IRS Tax Bill Notices

Posted on by Lorrie Reid

As the year ends and tax season starts, the first scam warnings have arrived. This notice was sent regarding fake IRS tax bills related to the Affordable Care Act. Please read the below information (IRS Tax Tips 9/23/2016) or click this link to get redirected the IRS.gov website.

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Issue Number: IRS Special Edition Tax Tip 2016

Inside This Issue

Beware of Fake IRS Tax Bill Notices

The Internal Revenue Service and its Security Summit partners are warning taxpayers and tax professionals of fake IRS tax bills related to the Affordable Care Act.

The IRS has received numerous reports of scammers sending a fraudulent version of a notice- labeled CP2000 – for tax year 2015. The issue has been reported to the Treasury Inspector General for Tax Administration for investigation.

This scam may arrive by email, as an attachment, or by mail. It has many signs of being a fake:

– The CP2000 notices appear to be issued from an Austin, Texas, address;

– The letter says the issue is related to the Affordable Care Act  and requests information regarding 2014 coverage;

– The payment voucher lists the letter number as 105C;

– Requests checks made out to I.R.S. and sent to the “Austin Processing Center” at a post office box.

IRS impersonation scams take many forms: threatening phone calls, phishing emails and demanding letters. Learn more at Reporting Phishing and Online Scams. The IRS does not initiate unsolicited email contact or contact by social media.

An authentic CP2000 notice is used when income reported from third-party sources such as an employer does not match the income reported on the tax return. Unlike the fake, it provides extensive instructions to taxpayers about what to do if they agree or disagree that additional tax is owed. A real notice requests that checks be made out to “United States Treasury.”

The IRS and its Security Summit partners – the state tax agencies and the private-sector tax industry – are conducting a campaign to raise awareness among taxpayer and tax professionals about increasing their security and becoming familiar with various tax-related scams. Learn more at Taxes. Security. Together. or Protect Your Clients; Protect Yourself.

Share this tip on social media — #IRStaxtip: Beware of Fake #IRS #Tax Bill Notices. http://go.usa.gov/xKe69

 

 

Small Business & The Affordable Care Act

Posted on by Lorrie Reid

We are in the second year of the Affordable Care Act being fully implemented, however, for most of us this Act has brought more confusion, as to the available options small business owner have. A great resource for questions suited toward Small Business Owners is made available by the Small Business Administration.

On July 21th, 2016, the SBA is hosting a free webinar, “Affordable Care Act 101 Webinars for Small Business Employers”. “SBA, the Department of Health Human and Services, and Small Business Majority have teamed up for a free webinar series where small employers can learn the basics of the Affordable Care Act and what it means for their organization and SBAemployees. Topics covered include the Small Business Health Care Tax Credit, the new Health Insurance Marketplace, and Employer Shared Responsibility and new employer reporting requirements.” (SBA.gov)

To take advantage of this offering, you can follow the link below.

https://www.sba.gov/managing-business/small-business-health-care

 

References
SMA Southern Medical Association. (2015, 01 21). Affordable-Care-Act-800×5401-400×270.jpg. Retrieved 07 14, 2016, from http://sma.org/ppaca-tax-return-fact-sheet/
U.S. Small Business Administration. (2016). SBA.gov. Retrieved from Managing Business: Small Business Health Care: https://www.sba.gov/managing-business/small-business-health-care

Affordable Health Care Act- Your Employees

Posted on by Lorrie Reid

The health care industry is about to go through its biggest overhaul in decades. During this time of change, your employees need you more than ever to help them understand the new health law. Here’s what you need to know.

What the New Law Means for Your Employees

If your employees don’t already have insurance (through your business, their spouse, or on their own), they will need to have health insurance beginning January 1, 2014, or risk paying a tax penalty when they file their taxes at the end of the year.

For employees who cannot afford to buy insurance, financial assistance (also known as premium tax credits or subsidies) will be available on a sliding scale based on family income and size.

Your Options as a Small-Business Employer

If you employ fewer than 50 full-time employees, you are exempt from the “employer-shared responsibility” mandate to provide health insurance coverage to your employees. (The employer mandate for larger employers has recently been delayed until 2015.) But even without the law requiring you to offer insurance, we know many of you want to help your employees get health coverage. Here are some options to consider:

Provide group insurance for your employees.

Group or employer-purchased insurance can average $5,615 per employee per year, or $15,745 for a family. Although this insurance generally is more expensive than other options, it is a great way to show your work family how much you value them.

Talk to an insurance broker or carrier to compare plans and prices. You may also want to explore SHOP (state-run marketplace for employer-purchased insurance) when it opens for enrollment in your state. Initially, many SHOP marketplaces will offer only one health plan to your employees. The Affordable Care Act requirement that SHOP marketplaces offer employees a “choice of health plans” has been delayed until 2015.

Help your employees buy their own insurance using pre-tax dollars.

Did you know that employee-purchased insurance is 53% cheaper on average than group insurance? That’s because there are no overhead administrative costs to create the group plan, and your employees pay only for what they need.

When buying their own insurance, some of your employees may qualify for a government tax credit.

For employees who don’t qualify for government assistance, you can help make insurance more affordable by enabling them to use pre-tax dollars to purchase insurance. Pre-tax dollars can mean $500 or more per year in tax savings. Here’s how it works:

Average individual premium for a single person:
$220/month x 12 months = $2,640

Federal tax rate 15%
Social Security and Medicare 7.65%
Total tax rate 22.65%
Total tax savings 2,640 x 22.65% = $598

You also have the flexibility to contribute to help employees pay for health care costs. Many small businesses give $200 per employee per month, but you can pick an amount that fits your budget. Even $0 is OK; your employees will still be able to use pre-tax dollars from their paychecks.

To learn more about how you can enable your employees to buy health insurance using pre-tax dollars, you may contact This email address is being protected from spambots. You need JavaScript enabled to view it..”>[email protected].

No matter what role you play to help your employees get coverage, we give you kudos for wanting to do the right thing for your work family.