CPAs offer advice on ACA implementation

he Pennsylvania Institute of Certified Public Accountants offers some insight.
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20 Under 40: JenniferDessoye

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Dr. Jennifer Dessoye is assistant professor of occupational therapy at Misericordia University and owner of Bright Beginnings Early Learning Academy (BBELA). Discontent with the early education curriculum and understanding of human development and neurolo (read more)

20 Under 40: Amy Hlavaty Belcher

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Amy Hlavaty Belcher, 39, owner and artistic director of Abrabesque Academy of Dancing, believes that for those who have been given much, much is expected. “I just try hard to do my best,” she said. I have been blessed with many opportunities and many gift (read more)

20 Under 40: Christopher Hetro

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Chris Hetro, 33, works hard and plays hard. “A strong work ethic is important, but finding balance outside of work is important because life is too short and you need to enjoy it,” he explained. As an electrical engineer and project manager at Borton-Laws (read more)

20 Under 40: C. David Pedri

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For attorney C. David Pedri, 37, it’s all about a combination of qualities that contribute to success. “My philosophy is simple: be open and honest, treat people the way you would want to be treated, with respect, and work hard to attain your dreams. The (read more)

20 Under 40: Ed Frable

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Ed Frable, 28, believes “if I work hard and stick to my word, good things will happen. My crew will not be deterred. We will re-evaluate our game plan and not give up until the job is complete,” explained Frable, the owner/operator of Ed Frable Constructi (read more)

20 Under 40: William H. Bender II

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William H. Bender II, CFP, CIMA, CRPC, loves what he does. “I’m lucky. I come to work every day excited to help the people and institutions we work with,” explained Bender, 34, first vice president at Bender Wealth Management Group, Merrill Lynch. The fam (read more)

20 Under 40: Angelo Venditti

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Angelo Venditti, 38, heard a call to the helping professions early on. Geisinger Northeast’s chief nursing officer answer was to volunteer for his local fire company. After high school, he became a paramedic, then enrolled in nursing school. Three years a (read more)

20 Under 40: Donald Mammano

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At 20, Donald Mammano began his own company, while attending the University of Scranton. Mammano, now 33, and president of DFM Properties, recalls, as a youngster, holding a flashlight while his father fixed the kitchen sink. “From that point on I was fas (read more)

20 Under 40: William J. Fennie III

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William J. Fennie III, 27, is always knocking on the proverbial door, because he knows one day, one will open. As an investment specialist with Integrated Capital Management (iCM) he cannot take “no” for an answer. “I make cold calls every day to invite f (read more)

20 Under 40: Marcus Magyar

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As an advisor at CAPTRUST Financial Advisors, Marcus N. Magyar, CFP, 30, provides comprehensive wealth management and investment portfolio services to business owners, executives, families and high-net worth individuals. His multi-disciplinary team of pro (read more)

20 Under 40: Heather Davis

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Heather M. Davis, 33, director of marketing and communication, is responsible for creating, overseeing and implementing a strategic marketing and comprehensive communications plan for The Commonwealth Medical College (TCMC). She is also responsible for pr (read more)

20 Under 40: Alexandria Duffney

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Alexandria Duffney, 30, is competitive by nature and loves a good challenge. These qualities have led her to her position as associate director of graduate admission at Wilkes University. Here she works with prospective students interested in enrolling in (read more)

20 Under 40: John Culkin

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John Culkin’s tenets inform: “Less haste equal more speed; the same boiling water that softens the potato hardens the egg, it is all about what you are made of, not the circumstances surrounding you; and don’t ask someone to walk a mile in your shoes, bef (read more)

20 Under 40: Conor O'Brien

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“What could be worse than getting to the end of your life and realizing you hadn’t lived it,” mused Conor O’Brien.” As co-founder and executive director of the Scranton Fringe Festival, O’Brien, 25, is responsible for leading the development of the overal (read more)

20 Under 40: Jessica Siegfried

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Jessica Siegfried, 38, is senior designer with BlackOut Design Inc., where she is responsible for all creative design at the full-service agency, from traditional branding and print to collateral and front end web design. “I’ve always had an interest in t (read more)

20 Under 40: David Johns

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David Johns’ career path has been shaped by his diverse experiences. As director of structural engineering at Greenman-Pedersen Inc., Moosic, Johns, 39, ensures that his engineering and consultant teams provide clients with their best effort. “We complete (read more)

20 Under 40: Robyn Jones

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Robyn Jones, 38, president of ReferLocal LLC, has learned just as many lessons from her business successes as she’s had from her failures — and she believes it’s important to share that knowledge with her employees. After graduating from American Universi (read more)

20 Under 40: Nisha Arora

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Nisha Arora, 36, tries to be the best version of herself every day. As general counsel for ERA One Source Realty Inc., she realized she cannot control other’s behavior so “I try to focus on myself and how I can be better,” she explained. Arora’s responsib (read more)

20 Under 40: Justin Sandy

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Starting at a young age in Hazleton, Justin C. Sandy, 33, found a passion for running. He became a member then a coach for Misericordia University’s cross country and track and field programs. “It was at Misericordia that I also garnered the profound sati (read more)

20 Under 40: Dr. Ariane Conaboy

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As a doctor of internal medicine at Physicians Health Alliance, Dr. Ariane M. Conaboy, 34, realizes the importance of human life and how fragile it can be at times. Conaboy graduated from Scranton Prep and the University of Scranton with a double major in (read more)

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There’s no more room for procrastination regarding Affordable Care Act (ACA) implementation. Now is the time for small business owners to be sure they understand how the ACA affects them. The Pennsylvania Institute of Certified Public Accountants offers some insight.

Must you provide health insurance?
A survey by eHealth Insurance shows that confusion still surrounds the ACA. Nearly 70 percent of small business leaders say they aren’t sure if they will have to provide insurance for their employees. The ACA does not require all employers to provide health insurance for their employees. The Employer Responsibility provision of the ACA applies to businesses with more than 50 full-time workers.

2013 ACA Guidance
Here is a list of ACA action items:

* Reporting employer-provided health coverage on form W-2

For employers who issue more than 250 W-2 forms, the ACA requires the cost of coverage to be reported under an employer-sponsored group health plan on their employees’ W-2 forms.
This requirement is optional for employers with fewer than 250 employees.
Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.
According to the IRS, the amount reported does not affect tax liability, as the value of the employer-excludible contribution to health coverage continues to be excludible from an employee’s income, and it is not taxable.
The reporting is for informational purposes only, to show employees the value of their health-care benefits so they can be more informed consumers.

* Health FSA contribution limits.
As of Jan. 1, there is a $2,500 limit on pretax employee contributions to health-care flexible spending accounts (FSAs) under the ACA. The $2,500 limit is effective for plan years starting Jan. 1, not the taxpayer’s tax year. Employers with fiscal year FSAs may keep higher reimbursement limits in effect through the end of their 2012-2013 plan year. Employers may adopt retroactive amendments to impose the $2,500 limit before Dec. 31, 2014.

* Medicare Part D subsidy deduction
Effective Jan. 1, the deduction for the portion of health-care expenses that are reimbursed to the employer through the Medicare Part D subsidy program will no longer be available.
The retiree drug subsidy will remain in existence; however, an employer’s ability to deduct the amount of the subsidy will end. This change increases an employer’s income-tax liability, in effect increasing the employer’s cost of providing prescription drug coverage to retirees.

* FICA Medicare tax increase
For tax years beginning after Dec. 31, 2012, the FICA Medicare tax rate will increase by 0.9 percent for wages over $200,000 ($250,000 for married couples filing jointly). This increases the employee’s portion of the FICA Medicare tax from 1.45 percent to 2.35 percent for wages over $200,000 ($250,000 for married couples filing jointly). Employers are required to collect the employee’s portion of this FICA Medicare tax.

* Notice of state insurance exchanges
As of March 1, plans must provide notice to employees and new hires of upcoming state insurance exchanges. Gov. Corbett stated that Pennsylvania will not build its own insurance exchange, consequently, the federal government will administer the exchange. Additional guidance in this area is expected.

* Will you pay a penalty?
You may have heard that employers will have to pay a penalty — also referred to as the shared responsibility provision — if they don’t provide health insurance for their employees. This will not apply to most small businesses. Employers with fewer than 50 full-time employees are not subject to the shared responsibility provision that takes effect Jan. 1, 2014. In addition, if you have at least 50 full-time employees but no employee receives an individual premium tax credit or cost-sharing reduction (both based on income), there’s no penalty — whether or not you offer health insurance.

* Potential tax credits
As a result of the ACA, some small businesses may be eligible for a health-care tax credit this year. If you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35 percent (up to 25 percent for nonprofits) to offset the cost of your insurance.

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