This meeting, with Healthcare Reform experts Chris and Brian McPike, will be held at the UNICO building (4435 O street, Lincoln, NE 68510) this Thursday, May 23rd from 3pm-4pm.

Please RSVP to Brian at bwallingford@unicogroup.com

Employer group health plan should already be complying with:

• Coverage for young adults to age 26 and Deletion of lifetime & annual dollar limits
• Limits on pre-existing condition exclusions, Summary of benefits/coverage provided to participants and W-2 reporting of cost of coverage

In addition, plans that do not have “grandfathered” status under ACA, are subject to…

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While coverage is available through gun owner associations and through specialty insurers, the liability component of homeowners and renters insurance policies offers some protection for gun owners…

A disaster plan is an organization’s response to an event that threatens its ability to conduct business normally…

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We have seen countless articles on the subject of what employers will face in the way of penalties if they don’t follow the new federal mandates for health care reform. The following are some of the most recent issues being discussed. Submitted by Mick Sibbel

Large Employer Status

Only companies that meet the large employer threshold are subject to ACA’s pay or play rules. To qualify as a large employer, a company must have at least 50 full-time employees, including full-time equivalents (FTEs).

To determine if a company is a large employer, aggregation rules apply for companies that are related or commonly owned. Specifically, all employees of a controlled group of businesses under Internal Revenue Code (Code) sections 414(b) or (c) or an affiliated service group under Code section 414(m) are taken into account to determine if an employer is subject to the pay or play rules.

If the combined total meets the large employer threshold, each separate member of the group is subject to the pay or play rules, even those companies that on their own do not have enough employees to meet the threshold. To avoid ACA’s penalties, companies that are subject to the pay or play rules must provide health coverage to full-time employees and their dependent children that is affordable and provides minimum value.

Eligibility for the Safe Harbor

On Aug. 31, 2012, the IRS issued Notice 2012-58 to describe safe harbor methods and rules that employers may use to determine which employees are treated as full-time employees for purposes of ACA’s shared responsibility provisions. IRS Notice 2012-58 also addresses a safe harbor based on Form W-2 wages (Box 1*) for employers to use in determining whether their health coverage is affordable.

Employers may rely on the safe harbor methods and rules outlined in IRS Notice 2012-58 at least through the end of 2014. This reliance covers a measurement period that begins in 2013 or 2014 and the associated stability period, which may extend into 2014, 2015 or 2016. According to the IRS, employers will not be required to comply with any future guidance that is more restrictive on these issues until at least Jan. 1, 2015.

To be eligible for the safe harbor, an employer must meet certain requirements:

• The employer must offer its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an employer-sponsored plan; and
• The employee portion of the self-only premium for the employer’s lowest cost coverage that provides minimum value (the employee contribution) must not exceed 9.5 percent of the employee’s W-2 wages.

If the employer satisfies both of these requirements for a particular employee, along with any other conditions for the safe harbor, the employer would not be subject to a penalty for providing unaffordable coverage with respect to that employee. This is the case even if the employee receives a premium tax credit or cost sharing reduction to purchase coverage through a health insurance exchange.

*Generally, the amount shown in Box 1 is equal to the amount shown in Box 3 (Medicare wages) minus any 401k contributions (shown in Box 12 code “D”) and any pre-tax insurance premiums shown in Box 14 (usually labelled “Health Insurance” or “Section 125 Cafeteria Plans” or similar phrases).

Measurement periods to determine full time status

For ongoing employees, employers will be able to use the safe harbor measurement and stability periods previously described by the IRS in Notice 2011-36 and Notice 2012-17. Under this approach, an employer determines each ongoing employee’s full-time status by looking back at a measurement period lasting between 3 to 12 consecutive calendar months, as chosen by the employer, to determine whether the employee averaged at least 30 hours of service per week during this period. The employer has the flexibility to determine the months in which the standard measurement period starts and ends, as long as the determination is made on a uniform and consistent basis for all employees in the same category.

If the employee worked at least 30 hours per week during the measurement period, he or she would be considered a full-time employee for a set period of time into the future, known as the “stability period.” The stability period must be at least six calendar months following the measurement period and must be at least as long as the measurement period. The employee would be treated as a full-time employee during the stability period, regardless of the hours worked during that period, as long as he or she remained employed.

If an employer determines that an employee did not work full-time during the measurement period, the employer may treat the employee as not a full-time employee during the stability period that follows (but is not longer than) the measurement period.

Because employers may need time between the measurement and stability periods to determine which ongoing employees are eligible for coverage and to notify and enroll employees, Notice 2012-58 allows employers to use an “administrative period” between the measurement and stability periods. The administrative period following a measurement period can last up to 90 days.

Please note: these guidelines should not be the only source you use to make a decision and should not be considered legal or tax advice as that can only be provided by an attorney, CPA or other professional tax advisor.

If a client wishes to discuss their potential health care insurance coverage and requirements it would be best to secure an appointment with one of the health insurance producers in UNICO Midlands who can provide additional help in the area of health care reform.

Health Savings Account May Offer a Tax Deduction

Don’t forget that you may have a tax deduction waiting if you have an underfunded Health Savings Account and you act before April 15, 2013. A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-compatible health plan. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical expenses.

Contribution Tax Benefits

If your employer offers a payroll deduction through a Section 125 Cafeteria Plan, you can make contributions to your HSA on a pre-tax basis. The deduction is removed from your paycheck prior to taxes being applied and deposited into your HSA. Ask your employer if they facilitate pre-tax deductions.

Contributions can also be made post-tax as an “above-the-line” deduction. This means you can reduce your taxable income by the amount you contribute to your HSA.

Tax Deduction for Contributions

Health Savings Account (HSA) contributions made by an eligible individual (or by a family member of the eligible individual) are an “above-the-line” tax deduction in determining the gross income of the eligible individual.

HSA contributions are deductible whether or not the individual is itemizing deductions. You cannot deduct HSA contributions as medical expense deductions. For purposes of recognizing your HSA deposits and distributions on your personal tax return, the IRS requires you to complete Form 8889.

Earnings Tax Benefits

The interest on HSA funds grows on a tax-deferred basis. And, unlike most savings accounts, interest earned on an HSA is not considered taxable income when the funds are used for eligible medical expenses.

When do you Pay Taxes on your HSA?

The only time you may pay taxes or penalties on your HSA funds is if you make a non-eligible purchase, or if you contribute more than the yearly maximum contribution limit. However, both misuses can be corrected free of tax penalties by April 15th of the following calendar year.

HSA Contribution Limits

The maximum you may contribute to a Health Savings Account (HSA) is:

Catch-up Contributions

Individuals age 55 and over can make catch-up contributions.

Contribution Frequency

How often you make HSA contributions is completely up to you. You can make an annual lump sum contribution, you can make regular monthly deposits, or you can make multiple deposits in no particular order. Your bank or HSA administrator will always be pleased to accept your money.

A common mistaken impression is that HSA contributions must coincide with your health insurance premium payments (typically monthly, bi-monthly or quarterly). Not so.

HSA Contribution Deadlines

If you want to claim the HSA contribution tax deduction for a particular year, your HSA contributions must be made on or before that year’s tax filing date. For example, 2012 HSA contributions must be made on or before the April 2013 filing deadline.

HSA Contributions must be Cash

Health Savings Account (HSA) contributions must be in cash. Contributions cannot be made in stock or in other property.

Please note: these guidelines should not be the only source you use to make a decision and should not be considered legal or tax advice as that can only be provided by an attorney, CPA or other professional tax advisor.

If a client wishes to discuss their potential health care insurance coverage and requirements it would be best to secure an appointment with one of the health insurance producers in UNICO Midlands who can provide additional help in the area of health care reform.

UNICO Group Inc was named the Underwriting Agency of the Year for 2012 by the Great Lakes Region of United Fire Group, Inc.

“UNICO represents the client service and industry professionalism we seek when looking for an independent agency serving our clients. This recognition provides
support for the way they do business,” indicated Matt Hergenrader, regional representative of United Fire.

“This award is a welcome honor for our agency. We are proud to be recognized by our business partners.” stated Scott Nelson, president of UNICO.

Nelson continued, “We would like to thank all employees for their great team effort in providing the superior service to clients that makes us stand out among competitors. Working hard on a daily basis comes naturally to our UNICO team members in their daily dealings with customers, vendors, and their fellow employees. This award is the result of a lot of great teamwork, and everyone working together to provide the best service to our clients”.

UNICO Group, Inc. has been serving insurance and financial needs for business owners and families in Nebraska for more than 20 years. UNICO serves clients from four offices in Nebraska, including Lincoln, Omaha, Columbus, and Kearney.

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc., through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance, reinsurance, and life insurance as well as selling annuities.

The team at UNICO Group, Inc. can be reached at 1-800-755-0048.

We sincerely hope you can join us in this powerful statement to our children and our community.

Approximately 700 students will be in attendance and UNICO will be giving out “ITS T2D TXT L8R” thumb rings along with Allied Insurance who will hand out accident guides.

If you have any questions, feel free to contact Linda Simpleman at 402-361-5906 or lsimpleman@unicogroup.com

http://www.strictly-business.com/news/non-profit/insurance-professionals-of-lincoln-inc-to-host-annual-youth-award-banquet/