Small Business Health Care Tax Credit
A tax credit is available beginning with the 2010 tax year to qualifying small businesses offering health coverage. The credit is limited by the number of employees and average pay.
How Administaff Can Help
Administaff clients (that meet the requirements) will be eligible for the tax credit. Administaff will provide clients with the necessary reports to aid in calculating any tax credit that may apply.
Adult Child coverage to Age 26
Plans that cover dependent children must make coverage available to any eligible adult child until that child's 26th birthday.
How Administaff Can Help
Administaff is making changes to its group health plan to ensure compliance with this new requirement. In fact, to help our clients and their employees avoid gaps in coverage for new college graduates and other young adults, coverage was proactively extended (as of June 1, 2010) for already-enrolled adult children under most Administaff coverage options. Administaff clients don't need to negotiate with providers or worry about notifying employees.
No Lifetime Dollar Limits.
Health insurance plans may no longer limit the amount that can be spent on essential health care benefits during a person's lifetime.
How Administaff Can Help
Administaff understands that a person's benefits should give them peace of mind - not run out when they need them most. That's why, with limited exceptions, Administaff's health plans are already structured without lifetime limits on in-network health coverage.
No Pre-Existing Condidtion Exclusions for Those Under Age 19.
How Administaff Can Help
Administaff will make changes to its group health plan to ensure compliance with this new requirement and communicate those changes to clients and their employees. That way, clients can keep their attention focused on achieving their goals.
Cover Preventive Services Without Cost-Sharing Requirements.
How Administaff Can Help
Administaff will make changes to its group health plan to ensure compliance with this new requirement and communicate those changes to clients and their employees. That way, clients can keep their attention focused on achieving their goals.
Restricted Annual Dollar Limits.
Health insurance plans with limits on essential health benefits must set those limits at or above the dollar amounts established by the government. Additional guidance defining essential health benefits is expected.
How Administaff Can Help
Administaff will make changes to its group health plan to ensure compliance with this new requirement and communicate those changes to clients and their employees. That way, clients can keep their attention focused on achieving their goals.
W-2 Reporting of the Value of Employees' Health Coverage.
How Administaff Can Help
Employees of Administaff clients participating in Administaff sponsored group health plans will receive a W-2 for 2011 and subsequent tax years in compliance with this new reporting requirement.
No Reimbursement of Over-the-Counter Medicines.
Account-based health plans, such as flexible spending accounts, can no longer reimburse over-the-counter medicines unless prescribed.
How Administaff Can Help
Administaff will make changes to its flexible spending account plan to ensure compliance with this new requirement. To save clients from fielding repeated questions from employees, Administaff will communicate this change to employees during the flexible spending account open enrollment period so employees will have the information needed to choose an appropriate contribution level that fits their needs.
Summary of Coverage and Benefits.
Employees must be provided with a four-page, non-technical explanation of plan provisions.
How Administaff Can Help
Administaff will work with its insurance carriers to provide these summaries for each coverage option offered under Administaff's group health plan. Zero administrative headaches for clients with zero time spent.
Medicare Payroll Tax Increase for High-Wage Employees.
This is an additional tax on earned and unearned income applicable to high wage employees.
How Administaff Can Help
Clients can rest assured that Administaff's payroll system will be updated to comply with these changes.
Cap on Salary-Reduction Contributions to Health Care Flexible Spending Accounts.
The maximum annual contribution will be limited $2,500.
How Administaff Can Help
Administaff will make changes to its flexible spending account plan to ensure compliance with this new requirement. We will communicate the news to employees during the flexible spending account open enrollment period.
Employee Notification of Health Benefits Exchanges.
Employers are required to provide notice to employees of State Health Benefit Exchange coverage and options.
How Administaff Can Help
Administaff will work with our client companies to ensure that employees receive the required notice.
State Health Benefit Exchanges Operational.
States are required to establish Health Benefit Exchanges to facilitate the purchase of health insurance for individuals and small employers (defined as employers with fewer than 100 employees - states may set this number at 50 or fewer employees).
Free-Choice Vouchers.
Employers offering health coverage may be required to provide vouchers to purchase health insurance through a State Exchange for employees who satisfy certain income thresholds.
How Administaff Can Help
Pending further guidance, Administaff anticipates working with clients to provide vouchers to employees - to help relieve clients of this administrative burden.
Increased Governmental Reporting Obligations for Employers.
Employers are required to provide annual health coverage information reports to the government.
How Administaff Can Help
Pending further guidance, Administaff anticipates completing this reporting to remove the burden from our clients. We will provide necessary employee data to clients for reports they must complete on their own.
Two More Years of the Small Business Tax Credit.
This tax credit, which was first effective for the 2010 tax year, is now available only if the small business purchases coverage through a State Exchange, and the credit is limited to two years.
How Administaff Can Help
Administaff clients (that meet the requirements) will be eligible for the tax credit. Administaff will provide clients with the necessary reports to aid in calculating any tax credit that may apply, which means clients won't have to track this data themselves.
Individual Health Coverage Mandate.
Individuals who fail to maintain health coverage are subject to a monetary penalty.
How Administaff Can Help
Administaff offers many coverage options for eligible employees, so that they can satisfy this requirement in a way that suits their needs and budgets.
Pay-or-Play Mandate:
Employers that averaged 50 or more full-time employees during the prior calendar year will be required to provide coverage or pay a penalty for not doing so.
How Administaff Can Help
Administaff provides an easy, cost-effective way to provide health coverage and other benefits to our clients' employees, while relieving them of HR administrative burdens.
No Pre-existing Condition Exclusions.
Pre-existing condition exclusions for covered individuals over age 19 must be eliminated.
How Administaff Can Help
Administaff will make changes to its group health plan to ensure compliance with this new requirement and communicate those changes to clients and their employees. That way, clients can keep their attention focused on achieving their goals.
No Annual Dollar Limits.
Health insurance plans may no longer impose any annual limits on essential health benefits.
How Administaff Can Help
Administaff will make changes to its group health plan to ensure compliance with this new requirement and communicate those changes to clients and their employees. That way, clients can keep their attention focused on achieving their goals.
Excise Tax on Cadillac Plans.
A 40% nondeductible excise tax is imposed on high-cost ("Cadillac") group health plans.
How Administaff Can Help
Administaff anticipates making any required plan design changes to avoid triggering the excise tax.
