Employers How Prepared Are You?


Home » Small Business Resources » Employers How Prepared Are You?


Employers, How Prepared Are You?


Important Dates to Remember:

NOW – Tax credits are available for employers who provide health insurance for fewer than 25 employees.

Summary of Benefits and Coverage: We are now required to provide a 4 page double sided Summary of Benefits and Coverage (SBC) in 12 point font to plan participants for initial and open enrollment for plan years commencing on or after Sept. 23, 2012.

The SBC will disclose expanded ERISA requirements, outline the 60 day advance notice requirement for material modifications, provides a uniform glossary of standard insurance and medical terms, and describes the group health plan’s coverage and limitations.

Women’s Preventative Health Care Services Mandate: Non-grandfathered group health plans and individual policies are required to cover women’s preventative health care services without charging a copayment, a deductible or coinsurance for plan or policy years beginning on or after August 1, 2012.

Wellness Programs in Insurance: Expands the ability of employers to reward workers who achieve health improvement goals by permitting employers to potentially offer employees rewards of between 30%-50% of the cost of coverage for participating in a wellness program and meeting certain health-related standards effective January 2012.

December 31, 2013 – Employers who issue more than 250 W-2s must report employee health insurance on 2012 W-2s.

December 31, 2013 – All employers are required to report employee health insurance on 2013 W-2s.

January 1, 2013 – Employers must withhold Medicare tax of 2.35% when an employee’s earnings exceed $200,000.
The employer match remains at 1.45%.

Health insurance executives are limited to annual compensation of $500,000.

Flexible Spending Account Limits: For plans starting January 1. 2013, you will be limited in the amount of salary reduction contributions to a flexible spending account (FSA) for medical expenses to $2,500 per year.

Notifications regarding Exchanges: Effective March 1, 2013, employers will be required to provide a notice to their employees regarding the availability of the insurance exchanges

January 1, 2014 All employers who employ 50 or more full-time equivalent employees will be assessed penalties if they do not provide essential, affordable health insurance to all full- time employees.

To avoid the penalty of $2,000 per full- time employee beyond the first 30 employees, employers must offer a health plan that meets minimum acceptable requirements.

Penalties kick in if at least one employee receives subsidized coverage through the premium tax credit on the state exchange.

To avoid the penalty of $3,000 per year for each full- time employee who seeks subsidized coverage through the exchanges, an employer must offer coverage which costs the employee not more than 9.5% of household income.


Ready for Award-Winning HR,
Payroll, and Accounting
Solutions with PayTech?


Latest Tips from Our Blog

5 Benefits of Outsourced Accounting and Payroll Services


ShareAccounting and payroll services can be some of the most time-intensive and stressful tasks for any organization. Between time management, proper accounting, and the legal…


How to Find the Best Payroll Software for Your Construction Company


ShareWhen trying to identify the best payroll software for a construction company, there are many variables to consider. Realistically, the message behind the search can…


Using Cloud Payroll Systems to Help your Business Grow


ShareFor any size organization, a cloud-based payroll system is an integral part of accounting efficiency. It will also be a surefire way to safeguard your…