Smith, Sullivan and Brown, P.C.                                                                         Hot Topics for July 2015 
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for MA Sick Time
Guidelines
Update on Sick Time Law
On July 1, 2015 a new law went into effect granting sick leave rights to all private employees and most public employees in Massachusetts. We urge you to review the provisions of this new law and make any necessary changes to your company policies. 

For more information, go to:

Employer Mandate of The Affordable Care Act

You've had a lot of questions regarding the Employer Mandate of  the Affordable Care Act. We offer some helpful information, (and hopefully some clarity,) below and provide a link to additional information from the IRS.

Employers with 50+ Employees:
For 2015 and after, under the Employer Shared Responsibility provisions of the Affordable Care Act, employers will be subject to Employer Mandates rules. These rules will apply to those employing 50 full-time equivalent employees or a combination of full-time and part-time employees that is equivalent to 50 full-time employees.

The Mandate rules require these large employers to offer affordable health coverage that provides a minimum level of coverage to its full-time equivalent employees (and their dependents) or the employer may be subject to substantial penalties. The penalties of non-compliance are $100 a day per employee violation per day up to $36,500 per year per employee. 

Employers with less than 50 Employees:
Employers with fewer than 50 full-time equivalent employees are not required and will not be penalized for not offering coverage to employees. However, small employers are still subject to market reforms and information reporting.

Market Reforms

The market reforms apply to ALL GROUP HEALTH PLANS (with more than 1 plan participant) regardless of being a large or small employer.

Market Reforms requires:* 

  1. Group Health Plans to be non-discriminatory
  2. Group health plans may not establish any annual dollar amount of benefits for any individual.
  3. Employer payment plans cannot be in place. (Arrangements under which an employer reimburses an employee for some or all of the premium expenses incurred for an individual health insurance policy, or uses its funds to directly pay the premium for an individual policy). These arrangements are no longer allowed and violate the Affordable Care Act.
  4. 90 day waiting period limits
  5. No pre-existing condition exclusions
  6. Limits on cost sharing

*There are additional market reform requirements not listed above

Information Reporting

The Affordable Care Act requires insurers, self-insuring employers, and other parties that provide minimum essential health coverage to report information on this coverage to the Internal Revenue Service and to covered individuals.
 


All employers should consult an employee benefits professional to ensure compliance with the Employer Mandates and Market Reforms.

For more information, go to: http://www.irs.gov/Affordable-Care-Act/Employers
Partners Smith, Sullivan and Brown
Questions?
Call us at 508.871.7178
or go to: www.ssbcpa.com

At Smith, Sullivan & Brown, PC, our dedicated professionals listen to your auditing and accounting, tax preparation, and small business questions. We provide personalized solutions to you, your family, business or nonprofit, all at a reasonable price.

Our accounting team has extensive experience. We understand your frustration when you tell us that you've paid top dollar for accounting services-only to learn that there's a junior-level person working on your engagement. Or, that it's mid-March and your accountant isn't returning emails or phone calls because your files have been put on the back burner so that they can focus on the tax return crunch. At Smith, Sullivan & Brown, PC we only send senior-level accountants into the field and they remain accessible to you throughout the year. A dedicated team is assigned year-round specifically to our nonprofit clients, so that deadlines are met on time and your questions are never ignored.

Established in 1993, Smith, Sullivan & Brown, PC is for you if you value communication, one-on-one attention, and "hands-on" expertise from experienced senior-level accountants. Whether you have a project to bid on now, or in the near future, contact us to schedule an introductory meeting, we'd love to meet you! 
  
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