Dear Valued Client,
We hope you had a nice summer. As fall approaches, we would like to remind you of the following aspects of the health reform law:
As of March 23, 2010:
Small Business Tax Credit: Beginning in 2010, if your business has fewer than 25 full-time equivalent employees whose average annual compensation is less than $50,000, your business may be eligible for a tax credit for employer-paid health insurance premiums. For more information, please contact your CPA or tax advisor. You may also visit the IRS website (www.irs.gov).
As of September 23, 2010:
The following changes will be made to group plans as of the next plan renewal date following September 23, 2010:
-Dependent coverage for adult children up to age 26
-No lifetime benefit maximum limits
-No annual limits on certain types of benefits
-No pre-existing condition exclusions for covered children under age 19
-No policy rescissions except in cases of fraud or intentional misrepresentation
As of January 1, 2011:
W-2 Reporting Requirements: Employers must start reporting the value of employer-sponsored health coverage (both employee and employer contributions) on their employees’ W-2s. Although the value must be reported, employees are not taxed on this amount.
Please contact our office with any questions or concerns. Thank you.