If your practice has revenues
in excess of $500k and employs at least one person, the Affordable Care Act (ACA)
mandates that you provide your staff with certain information pertaining to the
health insurance benefits they receive from your practice. The due date to
provide your employees with a written notice is October 1, 2013. At this
time, there does not appear to be a requirement for employers to provide written
notice to their staff on an annual basis.
Even if your practice doesn't
provide your staff with any health benefits, you are still required to
distribute a written notice to all full-time and part-time employees by October
1st. And make sure to give any new staff members this written notice within 14
days of the hire date.
The government was kind enough
to provide the following two "model notices" for employers to use:
employer plan’s share of the total allowed costs of benefits provided under
the plan is less than 60 percent of such costs, workers may be eligible for
a premium tax credit if they purchase a qualified health plan through an
purchase a qualified health plan through an exchange may lose their
employer’s contribution to any health benefits plan the organization offers.
All or a portion of this contribution may be excluded from income for
federal income tax purposes.
to the rules, there is a penalty for non-compliance of $100 per each day that
you are late distributing the written notices. However, it appears that
the penalty won't be enforced for the October 1, 2013 deadline.
As part of the
PPACA, the federal government instituted the Federal Health Insurance Marketplace.
For more information about these new rules and to learn about how this new
exchange might benefit you, go to
All I can say is
that if you are en employer, it's going to be a confusing time trying to comply
with these new PPACA rules, regardless of whether you offer your staff health
ANSWERS TO FREQUENTLY ASKED QUESTIONS FOR INDIVIDUALS OF THE SAME SEX
WHO ARE MARRIED UNDER STATE LAW
In June 2013,
the US Supreme Court overturned Section 3 of the Defense of Marriage Act (DOMA),
which defined a marriage as a union between a man and a woman for federal
purposes. With the historic June 2013 decision, same sex married couples
(SSMC’s) have been granted the same federal rights, privileges, and protections
as heterosexual married couples as long as they were legally married in states where same sex marriages are
start by discussing some of the benefits of setting
up and maintaining a Retirement Plan for your
practice. The first benefit is that contributions
you make into the retirement plan are generally tax
deductible, and then those contributions grow tax
deferred. Remember, contributing to a retirement
plan is one of the best tax shelters available to
people during their working years.
Here are a
few questions I get all the time:
contributing to a retirement plan at all?
contribute now, especially since the stock market,
until recently, hasn’t performed all that well
during the past decade or so?
contribute to a retirement plan, the taxes you save
provide you with an Immediate Return on your
Investment. Let’s assume you’re in the 28% federal
tax rate, and you live in a state with a 5% rate.
So each additional dollar of income you earn is
taxed at 33%.
scenario, you would earn an instant 49.25% return on
your investment by contributing to a retirement
plan. That’s because it only costs you $670 in
after-tax dollars for every $1,000 that is now
invested. You’ve already earned a whopping $330 on
the $670 you invested.
will owe income taxes on the money withdrawn from
these accounts down the road, but you get to invest
the government’s money over all those years that the
money remains within your retirement accounts. And, you get to keep the
investment earnings on the government’s money.
Trust me, investing the tax savings over time really
adds up. The compounded growth on the tax savings
can easily add up to tens of thousands of dollars or
example, $100k invested and earning an average of
8% per year over 25 years will grow to be worth
$685k within a tax-deferred account. What happens
if you pay taxes each year at a 33% rate? Since
your compounded return falls from 8% to 5.35%, this
$100k investment will grow to just $370k over 25
years, assuming all the income and growth within the
account is fully taxed each year. That’s how
powerful tax-deferred compounding can be.
additional benefits of a retirement plan. For
starters, money in most retirement plans is
protected from your creditors. That’s great news for
anyone in a profession like healthcare where getting sued is not
completely out of the question. Please check with a
lawyer to find out which types of retirement
accounts are protected based on the rules for your
contributing to a retirement plan is one of the best
ways to build a nest-egg to fund your post-working
years. Unless you work for a government
employer or some other business that provides a
lucrative pension, it’s up to you to make
sure you have enough money set aside to fully fund a
comfortable retirement. And the earlier you start
building our nest egg, the better chance you give
yourself to reach your retirement savings goals.
for additional benefits of maintaining a retirement
plan for your practice? Offering a retirement plan
might be a way to help you attract and retain staff,
and is also a great way to reward staff for loyalty and
longevity at your practice. Most practice owners
agree that having an engaged staff is a key ingredient to
having a successful practice.
For 2012, the standard deduction for a single individual is $5,950 and
for a married couple is $11,900. A person will benefit by itemizing once
allowable deductions exceed the applicable standard deduction. Itemized
deductions include state and local income taxes (or sales taxes), real estate
taxes, mortgage interest, charitable contributions, and unreimbursed employee
For 2012, the personal exemption is $3,800.
Individuals will claim a personal deduction for themselves, their spouse, and
The maximum earnings subject tosocial security taxes is $113,700
for 2013, up from $110,100 for 2012.
The standard mileage rateis $.565 per business mile as of
January 1, 2012, up one cent from $.555 per mile since July 1, 2011.
The maximum annual salary deferral into a 401(k) plan or a
403(b) plan is $17,500 in 2013, up from $17,000 in 2012. And if
you'll be 50 or older by December 31st, you can contribute an extra $5,500 into
your 401(k) or 403(b) account that year.
The maximum annual contribution to your IRA is $5,500 for
2013, up from $5,000 in 2012. And if you turn 50 by December 31st,
you can contribute an extra $1,000 that year. You have until April 15,
2014 to make your 2013 IRA contributions.
In a shocking development, the
IRS recently announced that they will be honoring the FICA tax refunds
submitted by residency programs and individual doctors. The catch is
that only FICA taxes paid prior to 4/1/05 qualify.