The Patient Protection and Affordable Care Act (ACA) has brought sweeping changes throughout our country since its inception, affecting individuals and businesses alike with countless mandates, and imposing penalties and taxes for noncompliance. In 2014, individuals must secure health care coverage or face taxation. The counterpart to this provision requires employers that employ at least 50 full-time employees (including full-time equivalent employees) (Applicable Large Employers)[i] to offer affordable coverage to their full-time employees or, as with the individual mandate, face a penalty.[ii] Although the employer shared responsibility mandate, found in section 4980H and its related proposed regulations (Pay or Play Mandate), has been delayed until 2015, Applicable Large Employers should waste no time and take this opportunity to carefully strategize their approach toward compliance, including (1) analyzing their employee population, (2) ensuring that coverage is affordable and provides minimum value, and (3) contemplating how and when to calculate full-time employee status, either on a monthly basis or by using the safe harbor look-back provisions (found in the proposed regulations) in which they need to set measurement periods and subsequent stability periods, and decide whether to use administrative periods.[iii] Additionally, many employers must substantially revise their eligibility criteria, amend plan documents, and update policies, procedures, handbooks and other materials to reflect the new standard for full-time eligibility and, if applicable, continuation of coverage during a subsequent stability period. With these mountainous tasks loaded upon employers, one simple question may be forgotten: “Who are my employees?”
Archive for the ‘Tax Law’:
October 18th, 2013
August 29th, 2013
WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
December 19th, 2011
Accelerate or defer income. If you have deferred compensation, consider which best suits your planning: to take your earned income now and pay taxes immediately at today’s historically low tax rates or to defer income until later and pay taxes when rates may be higher. Similarly, if you are eligible for qualified plan distributions and option grants, you need to decide whether to accelerate income recognition.
November 16th, 2011
Thanksgiving is right around the corner and many of us are busy counting our blessings. We wonder how to bless those who have blessed us. We ask, “What would be an appropriate gift?” “Should I get a present, give cash, or simply write a check?” If your next question is, “What are the tax ramifications of my gift?” then you must be a tax attorney. If that wasn’t your next question, this Q&A summary of the federal gift tax law is for you.
October 5th, 2011
At a recent luncheon organized by the Real Property Section of the Ingham County Bar Association, Kimball R. Smith, III, Chair of the Michigan Tax Tribunal, gave his “Michigan Tax Tribunal Update.” As we all are aware, real property values in Michigan have significantly decreased in recent years. As one may suspect, the inverse is true of filings with the Michigan Tax Tribunal. For these reasons, I thought I would share some highlights of Mr. Smith’s presentation with our readers.
September 16th, 2011
The IRS has recently updated rules relating to donations and transfers to nonprofit organizations by donors and sponsors of donor-advised funds (DAFs). These rules are utilized by donors to assure themselves that their donations are eligible for charitable income tax donation and by DAFs who are required to exercise expenditure responsibility.
September 6th, 2011
Just as our children return to school to acquire the skills, knowledge and experience to enter the job market, so to does Congress and state legislatures return to work to create the environment to stimulate job growth.
May 26th, 2011
On Wednesday, May 25, 2011, Governor Snyder signed a number of new tax Bills to revise Michigan’s tax structure. The new laws include elimination of the Michigan Business Tax (MBT), creation of a Michigan Corporate Income Tax and permanent spending reductions, elimination of tax credits for low-income workers, phase-out of most senior tax breaks and eliminates numerous income tax deductions and credits. The new law is effective January 1, 2012.