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MILLIONS OF Americans and small business owners across the country have more questions than answers about the sweep- ing health care law passed last year. No wonder. The law creates many new changes and require- ments for employers: tax credits, reporting value of insurance plans on employee W-2s, option to maintain grandfathered plan status, coverage for dependents up to age 26, non-discrimination for fully insured plans, CLASS Act and others, including fl ex-


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ible spending account (FSA), health savings account (HSA) and health reimbursement ac- count (HRA) changes. What do these provisions


mean for you, your employees and your business? Consider the provisions that have already taken effect and those that take effect in January. Key provisions effective immediately: Tax Credits for small busi-


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nesses. Depending on your situation, tax credits may be available for Tax Year 2010. Em- ployers may qualify to receive the tax credits if they have fewer than 25 employees, have aver- age annual wages of less than $50,000, and contribute at least 50 percent of the single premium cost for each enrolled employee. The credits will be applied to an employer’s 2010 tax returns and are based on premiums, contri- butions and tax liability. Not every employer will qualify, and not every qualifi ed employer will be eligible for the full credit. Be sure to keep records of your 2010 premium payments. Continuing young adult


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32 January 2011


coverage. Millions of young adults who currently have no health care insurance, or were previously dropped from a par- ent’s coverage because of an age limit, may be covered under a parent’s policy as of September 23, 2010. That means employers must continue health insurance


continued on page 34 is Now INDEPENDENTRETAILER


How New Health Care Law Affects Retailers


SEE VIDEO ONLINE


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