You Better Watch Out, You Better Not Cry: What Employers Need to Know about the Imminent Obamacare – Los Angeles Income Tax Planning and Income Tax Litigator Attorney Bruce Givner

by Bruce Givner on January 15, 2013

Beginning in 2013, major changes of Obamacare (Patient Protection and Affordable Care Act (ACA)) will begin to take effect for employers with 50 or more full-time-equivalent (FTE) employees. Two major points:

1. There is a difference between a full-time employee and a FTE. A full-time employee works at least 30 hours a week, but does not include seasonal employees who work less than 120 days a year. A FTE is not only the full-time employees, but part-time employees. To calculate the number of part-time FTEs take the total hours worked by all the part-time employees in a month, then divide by 120.

2. “Qualified” health insurance coverage, which provides minimum essential health benefits, must be offered, and it must be affordable – covering at least 60% of employee’s health care expenses at a cost no more than 9.5% of the employee’s household income

Employers required to comply with Obamacare must also remember that, as in 2012, employer-provided health coverage must be reported on the employee’s Form W-2. There is an exception for the employer who files less than 250 Forms W-2 the previous year. Employers also not required to include health coverage information on the Forms W-2 are federal, state and local government employers, churches and other religious organizations, and a business owned exclusively by a Native American tribal government recognized by the federal government.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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