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Healthcare Reform Bill Info
-March 25, 2010


As trusted business advisors, we feel it is important to keep you informed as significant changes develop in government which may affect your business in the near future. The new health care bill will go down as one of those once-in-a-generation milestones, the merits of which will likely be debated for decades. Itís important to point out some important tax changes included in the bill and the companion ďreconciliationĒ bill now before the Senate.
Here are some of the key tax provisions:
  • Starting immediately, certain small businesses with less than 10 employees will get a 35% credit for the cost of providing employee health benefits.
  • Starting in 2011, employers will have to report the value of health benefits on Form W2.
  • The penalty tax for Health Savings Account distributions not used for health care expenses doubles from 10% to 20%. This will discourage using HSAs for supplemental retirement savings.
  • Starting in 2013, the 7.5% floor for deducting medical and dental expenses climbs to 10% (unless you or your spouse are 65 or older, in which case it remains at 7.5% until 2016).
    Healthcare flexible spending account contributions are capped at $2,500 per year.
  • Starting in 2014, businesses with more than 50 employees will have to offer health benefits or pay a penalty of $750/employee.
These are a few of the many new provisions included in the healthcare bill. If any of these pertain to your business, or if you have any questions or concerns, call Fiducial today and speak with one of our many professional consultants. The complete bill is very lengthy, and it will take time to analyze itís entire content. We at Fiducial are here to help clarify the information, and will be monitoring the billís provisions and effects closely, and will provide details as soon as they become available. In the meantime, call us with any questions! 1.866.FIDUCIAL