The holiday season is upon us…already!? With
Thanksgiving this week, BASE® plans to close our office for two days (November
27-28) to allow employees time to share with their family and recharge before
one of the busier months of the year.
Not only is it busy because of everything going on in
everyone’s personal life, but here at BASE® we find a lot of business owners
looking to take advantage of tax savings for the final month of 2014 and
helping many business owners and Business Partners prepare for 2015.
With all of the Affordable Care Act (ACA) changes that have
taken place this year, many business owners find themselves looking to their
tax professional for guidance. And this year BASE® has found many tax
professionals looking for a trusted advisor to administer employee benefit
plans for them, simply because there is so much more for them to be responsible
for and keep track of in light of the ACA.
For instance, on November 6, 2014 the Department of Labor,
Health and Human Services and the Treasury Departments issued new guidance regarding
what arrangements do not comply with the ACA’s market reforms and may subject
the employer to penalties. This latest guidance effectively puts an end to the
S Corporation shareholders’ ability to take the 1040 deduction for their health insurance premiums. This change is effective immediately
for the 2014 tax year and is for any S Corporation with 2 or more
employees. The measure prohibits all employer provided arrangements, with
2 or more employees, that reimburse individual health insurance premiums
without regard to whether the employer treats the money as pre-tax or post-tax
income to the employee. Since the individual premiums cannot be shown as income
on the Form W-2, the S Corporation shareholder is unable to meet the criteria
of the Self Employed Health Insurance Deduction.
This is just one of many changes that impacts business
owners just in time for the holidays with regard to employee benefits. That is
why BASE® has more and more tax professionals partnering with us to focus on tax
advantaged employee benefit plans for them, and to help them avoid risking
their clients $100 per day per employee penalties due to many new regulations
surrounding these types of plans.
BASE® remains vigilant as new ACA regulations and guidelines
are released, and focused on keeping our clients and Business Partners
up-to-date of changes that impact them. With all of the competing demands
our clients and Business Partners are faced with throughout the year, we take
pride in providing the highest degree of service. This service includes
establishing that all of our plans are in compliance with the latest
regulations, and knowing that our plans meet all ACA market reforms for our
clients. Don’t wait until after the holidays to see if your tax
advantaged plans are in compliance, call BASE® today to see if your plan is at
risk of ACA penalties!
BASE® - Director of Marketing & Communications