By Aaron Peterson, Editor Agents Advantage
If you haven’t been paying attention as the owner of a business, now is the time. If you have been trying to find some answers there is still time.
The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace runs from Oct. 1, 2013, through March 31, 2014. If you are seeking information about how to obtain health care coverage or financial assistance to purchase health care coverage for you and your family, visit the Health and Human Services website, HealthCare.gov. For anyone who has not completed enrollment but did begin the process there is additional time allowed up until April 15th 2014.
Reporting Employer Provided Health Coverage in Form W-2
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement. W2 report will be and has been the proper method to use.
The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee's income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.
As was said there is no final determination or further guidance yet, but it should be kept in mind.
Businesses with employees are required to carry Workers' Compensation Insurance coverage through a commercial carrier, on a self-insured basis, or through the state Workers' Compensation Insurance program. Visit your state's Workers' Compensation Office for more information on your state's program.
If you have been in business for any length of time, it is worth weighing your options as to what may be a better fit for your current situation than what has worked in the past or may be affecting your future business plan.
For additional information or information on Agents Advantage, contact Aaron at 800-340-5856 or aaron@mycpsinc.com.
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