Business Insurance | Bernardini & Donovan

July 19, 2013September 8, 2016

Controlling the “Play or Pay Penalty” Under Healthcare Reform

When preparing to comply with the new Healthcare Reform law, large employers should recognize the implications of non-compliance as it relates to the play or pay penalty. If your organization has over fifty full-time employees and they were there in the preceding year, you must offer an adequate health care insurance option to them or pay penalties. What does this mean?

It means that if you are a large corporation, your penalties will be assessed based on the recorded number of full-time employees. The pay or play penalty can be calculated in a variety of ways. If you have a number of subsidiaries, your calculations would be different than that of a company with just one major corporation and all of the full-time employees working under that entity. This penalty applies to the corporation or entity that failed to provide “affordable” coverage, which is the main stipulation of the law. If your corporation offers this coverage, then you are in compliance and will not face these penalties.

For more detailed information on the pay to play penalties and how it could affect your organization, contact Bernardini & Donovan Insurance Services.

July 15, 2013September 8, 2016

How the Play or Pay Penalty Works

One of the upcoming changes included in the healthcare reform bill is what is known as the Play or Pay penalty. It’s aimed at larger businesses with a certain amount of employees, and it is not exactly straightforward. An employer can offer health insurance , but, it must be “affordable”. The idea behind the penalty is to offset the cost of insurance for each employee that uses the public health care plans.

The specifics for the Play or Pay penalty are as follows:

An employer that has 50 full-time or full-time equivalent employees (IE 100 part-time employees) must offer what is known as “affordable” coverage to all qualifying employees.
When an employer does not offer health insurance to all employees, an annual tax of $2,000 for each full-time employee if one employee gets federally-subsidized coverage.
In the case an employer does not offer “affordable” coverage to full-time employees, and one employee gets coverage through the exchange, the employer must pay an annual tax of $3,000 per subsidized employee who gets coverage through the exchange.

For all of these rules, the first 30 full-time employees are exempt from the penalties.

If you are in the Redlands area, or throughout California, contact Bernardini & Donovan Insurance Services for more information about how the penalties can affect your company.

July 10, 2013September 8, 2016

How a Small Group is Defined for Health Insurance Policies

The Affordable Care Act has divided employers into two categories: small group and large group. The act itself has a test that small business owners use to determine which category they fall under. There is a general dividing line at 50 full-time employees or equivalents, although there are some benefits specifically aimed at businesses with 25 or less full-time employees.

A business that employs 50 or less full-time employees falls under the small group definition. However, the full-time employee doesn’t necessarily have to be one individual. A business can have as many part-time employees as it wants as long as the equivalent number does not go over 50. In other words, an employer can have four part time employees working ten hours a week for a total of 40 hours worked. These four people working a total of 40 hours is calculated as one employee. There can be any variation on this theme to qualify for the small group coverage as long as the sum total is no more than 50 full-time employees.

If you are in the Redlands, CA area, or throughout California, and are interested in more information about health insurance policies for business owners, contact Bernardini & Donovan Insurance Services.

July 5, 2013September 8, 2016

Healthcare Reform: How does it affect large groups?

The new Healthcare Reform policies will affect everyone in different ways. Large and small business owners will definitely be affected, as well as health care organizations. As a large group employer, which is an organization that have over 50 full-time employees, you may already offer an insurance option to your employees. If you don’t, you will definitely be required to as the full policy goes into effect January 2014. What does this mean?

If you do not comply with federal regulations and provide an adequate health insurance option, you will pay stiff penalties. You have to offer it to at least ninety-five percent of your employees and prove it, even if they choose to opt out of the program. Make sure to keep proper documentation. If you don’t currently offer an adequate health insurance plan for your employees, now is the time to start looking for one. It may save you a lot of time and money in the long run.

For more information on insurance options and the law, contact Bernardini & Donovan Insurance Services.

July 1, 2013September 8, 2016

How to Determine if you are Considered Large Group

As a business employer, there are several parts of the Affordable Care Act (ACA) that may affect your business and your group plan. Beginning in 2014, business owners with 50 full-time workers or full-time equivalents (FTEs), are considered a large group employer. As a business owner, the act requires you to offer affordable health insurance coverage to all of your full-time workers, as well as their dependent children, or be subject to penalties.

Am I a ‘large group’ or ‘small group’ employer?
If you are a business that employs at least 50 full-time employees or 50 full-time equivalents during the prior calendar year, you are subject to the play or pay penalties and the employer-shared responsibility provisions.

There is a one-time special six-month transition rule, which applies only for 2014, which allows you to use any consecutive six -month period in 2013 rather than using the full previous twelve months to determine whether you are a large employer.

What is a full-time employee or equivalent?
A common law employee who averages at least 30 hours per week or 130 hours in a calendar month is considered a full-time employee. You must calculate your hourly worker’s service hours based on hours worked and hours of earned paid leave.

If you are a California business in the Redlands or Inland Empire, and have questions about health reform legislation, and how it will affect your large group plan, contact the experts at Bernardini & Donovan Insurance Services.

June 18, 2013September 8, 2016

Need Tax Assistance? Give 3H Business Services a Call!

In need of some tax assistance? Don’t know where to turn when the IRS is sending you letters? Give our friends at 3H Business Services a call.

3H Business Services has been in business since 1969 providing bookkeeping and tax preparation services. We are versed in many industries, including, but not limited to: restaurants, manufacturing, horse racing and breeding, construction, clothing, HOA associations, Non-Profits, Automotive repairs, Transportation, Attorneys, Medical offices, and Insurance agents. We also provide bookkeeping and tax preparation for asset protection.

In 2006, we were licensed as an enrolled agent with the IRS so that we can represent our clients with more authority in all 50 states on all types of tax returns, including: Individuals, Trusts, Estates, Inheritance taxes, Gift taxes, Partnerships, LLC’s, C and S corporations, Non-Profits, and Sales tax issues.

Our website has many useful tools as well. Visit us at www.tripleh.net, or call us at 909-748-7782. We look forward to being of service to you!

June 4, 2013September 8, 2016

Covered California SHOP Exchange

The Covered California SHOP Exchange provides two major benefits to small employers – access and administrative relief. SHOP provides access to a large selection of health plans that have previously been available only to larger companies. SHOP also takes over plan administration, relieving businesses with fewer than 50 employees of the burden of dealing with employee health insurance.

California’s approximately 375,000 small companies with 25 or fewer employees earning an average annual wage of less than $50,000 qualify for an additional benefit. These smaller businesses will be eligible for a 50% federal small-business tax credit when they purchase coverage through SHOP.

SHOP relieves small businesses of the burden of finding and administering health plans for their employees. The business sets up a customized SHOP profile and receives a unique group ID. Employees login to the SHOP exchange and select a plan from the available qualified health plans. SHOP handles enrollment, eligibility, adds, changes, and terminations. The SHOP Exchange provides the employer with the necessary reports to integrate employee premium deductions into their payroll system. The employer writes just one check and the Covered California platform sends the premiums to each health insurance carrier.

For more information about health insurance for small businesses in California, please contact Bernardini & Donovan Insurance Services.

Category: Business Insurance