Healthcare Reform Target Dates

Healthcare Reform Target Dates

The table below list dates that may be relevant if the Patient Protection and Affordability Care Act is allowed to remain intact.

W2 Reporting Requirements of aggregate value of employer sponsored coverage	2012
Standardized summary of benefits and coverage	Sept 2012
Group plan reporting to HHS and participants about efforts to improve	When regs are written
Auto enrollment options	When regs are written
60 day advance notice requirement of material changes	Sept 2012
Nondiscrimination rules for fully insured plans	When regs are written – expected Jan 2014
Maximum FSA deduction for employees of $2500	Jan 2013
Increase in Medicare tax on wages	Jan 2013
New Medicare tax on investment income	Jan 2013
Increase is medical expense threshold limits to be deductible to 10% of adjusted gross wages	Jan 2013
Exchange eligibility	Jan 2013
National Health insurance exchange begins	2014 - 2016
Health insurance premium assistance credit	Jan 2014
Individual mandate	Jan 2014
Play or Pay penalty	Jan 2014
No PreX limitations	Jan 2014
No annual plan limits	Jan 2014
Cadillac plan tax of 40% for excess cost of plan	Jan 2018

Are you aware of these upcoming Tax Hikes?

Below is a listing of some of the tax changes that are scheduled to happen. 

The following tax hikes will occur January 1, 2013:

Personal income tax rates: 

10% now increases to 15%

25% now increases to 28%

28% now increases to 31%

33% now increases to 36%

35% now increases to 39.6%

Capital gain rates rise from 15% to 23.8%.  The top dividends tax will rise from 15% to 43.4% in 2013.

Death Tax:  currently 35% any estate over $5M, in 2013 rate hike to 55% any estate over $1M

PPACA:  There are twenty new or higher taxes, penalties that have been project to cost us over $31 BIL in the coming years.  This mean everyone!

Medicare payroll hike - wages exceeding $200K ($250K married) rate increase from 2.9% to 3.8% (under $200K will still have 2.9%)

Flexible Spending Accounts (FSA) - cafeteria plans – These pre-tax saving accounts allow you to pay for health care, child care, and other items with non-taxable income.  The amount is being capped at $2500 per year.  This will cost tax payers over $10 MIL in new income taxes each year.        

Medical schedule A tax deductions.  Now medical deductions are allowed for medical expense dollars that exceed 7.5% of your adjusted gross income, this is being raised to 10% cut off.

Alternative Minimum Tax (AMT) - this used is a BIG change.  AMT used to impact just a few high income taxpayers, now over 31 million taxpayers can be hit with AMT - this adds to the ordinary income tax rates

Business owners no longer will have bonus purchase incentives - they used to be able to deduct half of the costs of new purchases now that will disappear and go back to the regular depreciation deductions

Small business is getting killed by over-reaching government.  New taxes, new regulations, new fines, additional government enforcement at every level…… we need to wake up to the mess created in Washington DC.  Our leaders are screwing things up!