EmPowerHR News Release - Health Care Reform: Is Your Medical Plan Granfathered?
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By: Mary O’Keefe – Director of Benefits, EmPowerHR
May 17th, 2010: The Health Care Reform and Reconciliation Act provided key provisions for grandfathered plans. Although much more guidance from the federal government is necessary some general provisions have been released. Below is a summary of grandfathered plans and what provisions affect them.
What plans are grandfathered?
Grandfathered plans are defined as a group health plan or individual coverage that was in effect
on March 23, 2010. This includes both fully-insured and self-insured plans.
Click here to read the rest of EmPowerHR's, "Health Care Reform Update"
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EmPowerHR News Release - How the Healthcare Reform Bill will Affect Your Business
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March 28th, 2010: Last week, President Obama signed into law sweeping legislation that will make changes to our nation’s health care system and provide coverage to nearly 32 million Americans...The law will impact every workplace and every employee. It will require all individuals to have health insurance coverage by 2014... As a client of EmPowerHR, We will help you understand the new law, how it will be implemented and how it may affect your business. The new law is complex and leaves several questions unanswered. Some aspects of the new law will take affect quickly, while others will unfold over the next several years...
Click Here to read the rest of EmPowerHR's "Health Care Reform Update"
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EmPowerHR News Release - How the HIRE Act will Affect Your Business
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March 23rd, 2010: On March 18, 2010, President Obama signed the "Hiring Incentives to Restore Employment Act" or "HIRE Act", an $18 billion jobs bill, into law. The essential provisions of the HIRE Act are as follows:
1. Exempts employers from paying the employer share of Social Security employment taxes on wages paid in 2010 to newly hired qualified employees who were previously unemployed. The amount of Social Security taxes eligible for this payroll tax forgiveness is 6.2% of FICA wages ($106,800 FICA wage cap) or a maximum credit of $6,621.00.
A "qualified" employee is one who:
- Begins employment after February 3, 2010 and before January 1, 2011;
- Was previously unemployed for more than 40 hours during the 60 days prior to his or her start date;
- Does not replace a current employee (unless that employee was separated from employment voluntarily or for cause); - Is not related to the employer or directly or indirectly owns more than 50% of the business; - A hire that may have previously been laid off
- May be hired for full or part time.
2. Provides employers with a tax credit up to $1000.00 for retaining qualified unemployed workers. The workers must be employed by the employer for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80% of the wages for the first 26 weeks of the period. This tax credit is a Section 38(b) business tax credit which will be available to most employers on their 2011 income tax return.
If your company works with a PEO
Included in this legislation is specific language allowing each business working with a PEO the same benefit as if the business was not in a PEO relationship. Thus, you will receive the credit for hiring qualified employees, which we will administer for you through our payment of Social Security taxes. Attached is a checklist that we believe covers the information that we will need to process your tax credit. We will keep you updated on additional information obtained by us and additional reporting requirements that may be released.
If you have any questions, please don't hesitate to contact our CFO, Janis Kanzler at 847.818.0707 x 19 if you have any questions concerning this credit. Or email us at info@empowerhr.com
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