Obama Health Care Bill and Other Federal Income Tax Update

On July 2, the Obama administration said that they will not require large employers (i.e., 50 or more employees) to provide health insurance for their workers until 2015.  This will only delay penalties assessed to large employers under IRC §4980H until 2015 but has no effect on any other tax provisions of the Patient Protection and Affordable Care Act (PPACA) that are currently in affect or will be in effect in 2014 and later.  IRC §4980H is just one small part of the PPACA tax provisions and large employers should still be aware of how it could affect them and how the employees they hire in 2014 could affect the penalties assessed under §4980H in 2015 and later.

The Garverick CPE "Obama Health Care Bill" class will still be covering the numerous tax provisions of the PPACA including:

o 3.8% unearned income Medicare contribution tax on investment and passive income & new proposed regulations (2013 & later)
o Additional 0.9% Medicare tax on high-income wages & self-employment income & new proposed regulations (2013 & later)
o Patient-Centered Outcomes Research Institute Fees - Form 720 due by July 31 for issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans
o 2.3% excise tax on medical device manufacturers & new final regulations (2013 & later)
o Limitations on health flexible spending arrangements (FSAs) and other medical reimbursement plans (2013 & later)
o Individual health care mandate penalty/tax & new proposed regulations under IRC §5000A ( 2014 & later)
o Refundable premium assistance credits & new final regulations under §36B (2014 & later)
o Shared responsibility excise tax penalty for large employer (i.e., more than 50 employees) & the new proposed regulations on determining full-time versus part-time employees as well as health insurance providing minimum value (2015 & later)
o New group health plan non-discrimination requirements and applicable excise taxes for failure to comply (effective date TBD)