Today, the Supreme Court upheld the centerpiece of the Affordable Care Act (Obamacare) – the individual mandate. As a result, most of the Affordable Care Act currently in effect will remain in effect unless future legislation revokes any of those provisions.
According to the law, by 2014, each of the fifty states will need to create exchanges and employers with 50 or more workers must offer coverage or face a penalty of $2,000 for each employee receiving insurance that is subsidized by the government. Subsidized insurance companies are also no longer able to exclude individuals with pre-existing conditions.
In addition, next year, the threshold for claiming medical expenses on tax returns will be increased and the limit on flexible spending accounts will decrease. Two new taxes will also be imposed on all taxpayers making more than $200,000 per year and on couples earning more than $250,000, the first tax is a 2.35 percent Medicare payroll tax, and the second is a 3.8 percent tax on capital gains, dividends and other unearned income. Furthermore, in 2015, a new excise tax will be imposed on employer-provided plans that cost between $11,850 and $30,950.
While we were successful repealing the 1099 mandate last year, other paperwork requirements that remain in place include:
- Changes to W–2 Forms: Effective in 2011, employers are required to include the cost of employer-sponsored health coverage on the employee’s W-2.
- Notice to Employees: Effective March 1, 2013, or upon subsequent hire, employers must provide written notice to employees about exchange information, eligibility for tax credit or cost-sharing reduction and possible loss of employer contribution.
- Report on Health Insurance Coverage: Effective Jan. 1, 2014, large employers must file a report on health coverage and make information available to employees.
- Automatic Enrollment: Employers with more than 200 employees must automatically enroll full-time employees in a health plan and provide employees adequate notice and an opportunity to opt-out.