• Syndicate content
  • Comment

Local companies team up to tackle Affordable Care Act

Posted: December 12, 2013 - 9:41pm
The YouToons explain the Affordable Care Act.
The YouToons explain the Affordable Care Act.

Most Americans have heard about the Affordable Care Act commonly refereed to as Obamacare, but at about 1,000 pages few have read it, so what does it mean?

Three local companies are holding conferences at the Conway Area Chamber of Commerce in the months leading up to the deadline to better inform business owners and individuals about what they can expect.

Thursday night, Hanlon & Associates CPA, Dundee Health Solutions and Payroll Vault held the first in a series of Businesses Empowering Themselves in Arkansas or BETA conferences to help individuals and business owners prepare for the upcoming tax, payroll and insurance changes.

“By the time you leave, you will be a more informed taxpayer who knows a tax pro,” said Laura Hanlon of Hanlon & Associates CPA.

With one in seven Americans uninsured, most families’ insurance premiums of almost $1,400 a year and an aging population, the government decided it was time for health care reform.

If a US citizen doesn’t have insurance from their employer, they can buy on the Exchange. The goal of buying insurance in a Marketplace is to keep prices competitive with transparent information and more options.

Beginning New Year’s Day 2014 individuals who make 138 percent of the federal poverty line will be covered under Medicaid. For a family of four this would be about $2,700 a month.

David Dundee, certified insurance agent of Dundee Health & Tax Solutions, tells business owners to get employees who qualify for Medicaid off their books.

“Assess if employees are above or below the poverty level, and if they are below 250 percent, don’t offer insurance,” he said. “There’s not a perfect choice, but if you don’t offer it, you can go in and pay people differently.”

At the beginning of the new year, insurers will no longer be able to turn people down or charge them more for preexisting conditions.

The government is mandating the level of essential health benefits for services such as outpatient care, prescription drug coverage and lab services.

In order to pay for all of this, ancillary tax laws are being implemented.

Employers are responsible for withholding an additional 0.9 percent Medicare tax. There will also be a 3.8 percent tax on net investment income.

“You’re going to start to see wealthy people begin to shift and juggle things,” Hanlon said.

People who fall somewhere between 138 percent of the poverty line and less than 400 percent, qualify for tax credits.

Small businesses apply for a tax credit of up to 35 percent of premiums when they pay 50 percent or more of employee’s premium and have fewer than 25 full-time employes whose average annual wages are less than $50,000.

Also beginning Jan. 1, individuals must have minimum essential coverage for nine months out of the year, or face a penalty.

“Theory and reality are not always the same, but the intent is to cover all US citizens,” Hanlon said.

Many people have a problem with being forced to buy insurance, but you have to buy car insurance, Dundee said, what’s the difference?

Individuals without insurance will pay $95 per uninsured adult and $47.50 per qualifying child up to a maximum of 1 percent of household income or $285, whichever is greater.

Eric Irons, CFO of Salter Construction attended the conference and said it was very informative.

“Individuals need to take action to find out what their responsibilities are because there could be some negative consequences when they fill their taxes out if they don’t,” he said.

Businesses with 50 employees or more will also be penalized in the amount of $3,000 per year per full-time employee if an employee’s share of their premium is more than 9.5 percent of that employee’s wages .

Dundee said health insurance used to be a recruiting tool, but he’s not sure if it’s going to be anymore.

The complexity of the Affordable Care Act is skyrocketing as it ties health care, taxes and payroll all together, Hanlon said.

“I would be weary of somebody who in one brain says they understand all aspects of this,” she said.

The three companies encouraged individuals and business owners to schedule consultations to look into their personal situation to find the best option.

“People need to know to pick up the phone and call someone they trust to see how it will impact them,” Dundee said. “That’s the only hope for Americans stepping up to the plate and learning what they need to know.”

For more information about the next conference call 501-339-7416, and visit www.centralarkansaspayroll.com/events.

(Staff writer Michelle Corbet can be reached by email at michelle.corbet@thecabin.net or by phone at 505-1215. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net. Send us your news at www.thecabin.net/submit)

  • Comment
Comments (4) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
Voter
286
Points
Voter 12/13/13 - 07:44 am
3
1
Sticker shock

Hope they are ready to hear the sticker shock . The ACA - horrible legislation from the President and part of Congress ; a takeover of 1/6 of the economy ; disastrous for small businesses ; infringing on businesses, religious groups & organizations that are opposed to providing abortion & contraception ; millions losing their insurance because of the ( unaffordable ) Obamacare ; not to mention the disastrous roll out and the lack of oversight already.

ARVoiceofLogic
5279
Points
ARVoiceofLogic 12/13/13 - 10:32 am
0
0
Infringing on religious groups?

Ugh... if you're a responsible adult and decide not to utilize contraception, that is your choice. If someone else requires it for medical or life planning decisions, your religion does not get to control that decision for them.

Corporations don't have freedom of religion. That is an individual right, not a corporate one.

Neglecting birth control is just going to result in more unplanned pregnancies, more poverty, and more medicare expense.

lachowsj
5014
Points
lachowsj 12/13/13 - 09:11 am
0
0
Typical

"'Assess if employees are above or below the poverty level, and if they are below 250 percent, don’t offer insurance,' he said. 'There’s not a perfect choice, but if you don’t offer it, you can go in and pay people differently.'”

That sounds suspiciously like advice as to how to circumvent the law.

DanCDaves
2781
Points
DanCDaves 12/13/13 - 09:29 am
1
0
Pretty good advice if you ask me.

It's a business seminar to help businesses stay in business.

Honestly, what was expected?

Back to Top