Supreme Court Upholds Affordable Care Act Mandate as a Tax
Late last month, the U.S. Supreme Court held that the Affordable Care Act’s individual mandate, which requires all Americans to purchase health care insurance, was constitutional. The Court upheld the mandate not under the Commerce Clause of the Constitution, but under Congress’s authority to impose taxes. Since the likelihood of repeal by Congress is considered remote, implementation of the Affordable Care Act will continue as scheduled through 2014. There are many aspects of this complex law that will have a major impact on the delivery of health care in this country, and ultimately affect all businesses and individuals. Overview of. Read More.
New Law Repeals Expansion of 1099 Reporting Requirements
As widely anticipated, President Obama signed into law on April 14th a bill to repeal expanded Form 1099 information reporting requirements for certain business payments and rental property expense payments. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 specifically repeals: the requirement for businesses, charities, and governmental entities to report payments to companies for merchandise purchased in the aggregate of $600 or more (originally effective for 2012), the requirement for rental property owners to report expense payments in the aggregate of $600 or more (originally effective for 2011), and the requirement for businesses, charities,. Read More.
IRS Provides Grace Period for W-2 Health Insurance Cost Reporting
The IRS has provided a one-year grace period to allow employers additional time to report the cost of employer-sponsored health insurance on each employee’s Form W-2. Under the Patient Protection and Affordable Care Act of 2010 (The Act), this reporting requirement was scheduled to take effect for the 2011 tax year. The relief applies to Forms W-2 issued in 2012 for the 2011 tax year. The IRS granted this relief to allow employers additional time to adjust payroll systems and procedures to ensure proper compliance with the new law. Therefore, beginning with Forms W-2 issued in 2013 for the 2012 tax year, employers will need to report the cost. Read More.
CB&H Webinar: The Impact of the HIRE Act and Health Care Reform on Nonprofits
Join us as we clarify how this recent legislation will affect your organization Earlier this year, President Obama signed into law significant pieces of legislation – the Hiring Incentives to Restore Employment (HIRE Act) and the Health Care Reform legislation (consisting of both the The Patient Protection and Affordable Care Act and the Health Care and Education and Reconciliation Act) – that will impact not-for-profit organizations from a tax perspective . Join us for this webinar as we discuss the following: What temporary tax credits does the HIRE Act offer to encourage job growth? How does a nonprofit employer qualify for or claim these credits? Which employers are eligible for the small employer health insurance. Read More.
Are You Eligible for the New Small Employer Health Insurance Tax Credit?
Your business may be eligible for the new Small Business Health Care Tax Credit . The credit, which was part of The Patient Protection and Affordable Care Act , is retroactive to tax years beginning in 2010 and is, therefore, available for the full calendar year of 2010 (for calendar year taxpayers). Designed to encourage eligible small employers to offer health insurance coverage to their employees, the non-refundable credit is available to small employers that pay at least half the cost of single coverage for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. The maximum credit amount is 35. Read More.
New Health Care Reform Law Includes Several Significant Tax Changes
The recent enactment of the Patient Protection and Affordable Care Act of 2010, in combination with the Health Care and Education Tax Credits Reconciliation Act of 2010 (collectively known as the “Health Care Act” or the “Act”), significantly changes the nation’s health care landscape, and many of these changes will be carried out through substantial additions and alterations to the U.S. tax code . Given the scope of this landmark legislation, this short summary is by no means a comprehensive review of the new law. As your tax professionals at CB&H continue to study the legislation, we will continue to keep you informed and up-to-date regarding the health care reform’s tax implications for you. Read More.