A large part of the Affordable Care Act was implemented in 2013. We are not here to debate the success or failure of the Act, but to provide some more clarity to you on one of the most complicated pieces of legislation enacted in recent history. There is a great deal of confusion on health care fringe benefits including Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), Flexible Spending Accounts (FSAs) and group insurance benefits. The penalties for non-compliance and discrimination are steep at $100 per employee per day.
Here are a few of the changes you should know about.
There are a number of tax advantages to picking the right benefit plan for your situation. HRAs can still be used for health care premiums if the company has only one employee. This might work well for proprietorships that employee a spouse or a child. FSAs are cheap to administer and save not only the employee money, but the employer saves 7.65% in FICA on the employee contribution.
Call our ACA team with any questions you have on this complicated act. Also, watch for updates on our website, ktllp.com.