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The Payroll Advi$or!

Employers Try To Prepare For New ObamaCare Fee in 2014.

Employers are trying to prepare for a little-noticed fee in the Obama administration’s new federal health-care law that will charge them $63 for each person they provide health insurance for in 2014 and beyond. This additional fee is one of the clearest cost increases companies face when the new law takes full effect. It has been calculated that companies and other plan providers will pay $25 billion over three years to create a fund for insurance companies to offset the cost of covering people with high medical bills.

The $63 fee will apply to plans covering millions of Americans in 2014. The ObamaCare program applies to employers that assume the risk for workers’ medical bills, in other words are “self-insured”, and many private plans sold by insurers. The fee is scheduled to be smaller for 2015 and 2016 as the fund balance grows.  However, it is noted that at this time regulators have not set those fee amounts for those years.

The fee was apparently heavily lobbied for by the insurance industry as they claim it will help offset the cost of providing health coverage for those individuals with pre-existing conditions. The new law forbids insurance companies from denying coverage to those individuals. Insurers claim that the fee will help maintain or even lower the cost of health insurance in general.

Many large companies are currently heavily lobbying government officials to postpone or even exempt their business from the fee. They claim it is just one of many projected costs associated with the implementation of ObamaCare

While the Federal government just agreed to take over the collection of the fee, instead of leaving it to the states, it is not clear how it will be collected. While submission of the fee will probably not be a payroll function, HR departments will inevitably be involved as HR administrators  have the best handle on employee counts and status.

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1-26-2016

Tennessee UI Wage Base Decreases for 2016!

Good news for Tennessee employers! The Tennessee Department of Labor and Workforce Development announced on Jan. 25 that effective Jan 1, 2016, the state’s unemployment-taxable wage base was reduced from is $9,000 to $8,000,  This decrease indicates an increase in the balance of the state’s unemployment trust fund on Dec. 31, 2015, ranging from $900 [...]

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1-25-2016

Employees and the Earned Income Credit Notification

Now that W-2 season is upon us, it is important that you notify certain employees about their eligibility to the Earned Income Credit. As per the IRS: Employers ”must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. Although you don’t have [...]

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12-29-2015

IRS Extends ACA Reporting Deadline for 2015.

After consulting with key stakeholders, Treasury and IRS officials have determined that additional time is needed for employers, insurers and other providers of minimum essential coverage to adapt and prepare their systems and procedures to gather, analyze, and report information about the health coverage they offer and provide and thus announced extensions of the due [...]

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