IEDA

1. IEDA PROFITING UNDER OBAMA: HOW SMART BUSINESS OWNERS WILL SUCCEED DURING THE SECOND TERM

2. 1. Have Dinner With Your Accountant

4. THE PROMISE – Patient Protection and Affordable Care ActMarch 23, 2010 • $1.1 Trillion cost • $140 Billion reduction in the deficit • Coverage for all: Cover 2/3 of the uninsured (the rest on Medicaid). • A new market for 30-34 million uninsured. • State exchanges provide consumer protection/risk pooling/lower costs

6. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

7. 2011 • Higher Premiums • Tax Credit • Dependent Care • Pre-Existing Conditions • Cannot rescind • Preventative Care • Wellness Program Grants • Unreasonable Rate Hikes (over 10%) • HSA Contributions Limited • OTC drugs excluded from HSA Accounts • 20% Tax on Distributions from HSA (unqualified exp) • Automatic enrollment in health plans

8. 2012 • 1099 Reporting - REPEALED • W-2 Reporting • Summary of Benefits and Coverage. This summary will be required for all health plans at companies, and will be due on or after September 23, 2012, during the first open enrollment period.

9. Women's Preventative Health Care Amendment - Free contraceptives, breast-feeding supplies, screenings for sexually transmitted infections, counseling for domestic violence and routine check-ups for breast and pelvic exams, Pap tests and prenatal care. 2012…a few other interesting provisions Abstinence Only Education - $50 million but states must match. 10% Tanning Tax. Calorie Information In Restaurants Parent And Coping Skills - $1.5 billion so that young mothers who need them can get visits once or twice a month from nurses. Breast-feeding Friendly Workplace – Bathrooms don’t count

11. 2013 • Medicare Part D (prescription drug) deduction ends • Social Security Tax back to 6.2% • Individual Medicare taxes rise from 1.45% to 2.35% for ‘high income’ people • Additional 2.9% Tax on unearned income begins for ‘high income’ people • Capital gains tax increases from 15% to 20% • Dividends tax increases from 15% to 20% • Itemized deduction ceiling rises from 7.5% to 10% • Flexible spending accounts limited to $2,500 withdrawals • Notification to employees about Health Exchanges

12. 2014…It Hits The Fan! Waiting periods cannot exceed 90 days Pre-existing conditions waived for everyone New reporting requirements to the government – Employers must report on health coverage of each employee and family members covered: name, SSN, coverage detail. Individual Mandate Employer Mandate

13. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

14. DO YOU HAVE 50 FTEs? NO? No health insurance requirement No penalties Tax credit available

15. DO YOU HAVE 50 FTEs? YES? Must pay >60% of employees premiums OR Employee’s premium payment cannot exceed 9.5% of their income

16. DO YOU HAVE 200 FTEs? YES? Required to automatically enroll new FTE in a health plan with the lowest employee premium (unless they opt out) AND Must cover >72.5% of cheapest individual health plan or >65% for family plans

17. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

18. THE MANDATE • Beginning 2014 everyone must have coverage, either purchased individually or provided by an employer • By 2019: Penalties for the individual is the higher of $695 or 2.5% of Adjusted Gross Income • By 2019: Penalties for companies are $2,000 per employee with the first 30 FTE exempt • If an employer has 75 FT employees and 30 get their insurance elsewhere you still have to provide insurance • No requirement to provide insurance for PT employees

19. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

20. How many full time employees do you have? Those are the ones who you will have to cover How many full time “equivalent” employees (FTE) do you have. Those are the ones who will figure into your >50 calculation. FULL VS PART TIME EMPLOYEES

21. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

22. THE TAX CREDIT • <25 FTE • <$50,000 average salary • 35% - 50% credit for health insurance

23. Employers with <10 FTE Example

24. Employers with 11-25 FTE Example

25. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

27. SHOP EXHANGES.... Small Business Health Options Programs State run by 2014 Small businesses: 100 FTE. Companies that grow can be grandfathered. Before 2016 States can limit to companies with less than 50 FTE After 2017 state exchanges will expand to >100 FTE Employers can buy through SHOP or from private agents.

28. AND.... Pools to purchase insurance Private insurance plans Multi State Health Plans (min 2 are required) Consumer Operated and Oriented Plans (Co-Ops)

29. Seven Things You Need To Know 1. Understand The Timeline 2. Determine If Your Plan Qualifies 3. Figure Out The Mandate 4. Calculate Full vs. Part Time Employees 5. See If You’re Eligible For A Tax Credit Get Ready For The State Exchanges Your Next Actions…Now

30. WHAT’S YOUR BEST HEALTHCARE STRATEGY…. 1 – Do Nothing 2 – End coverage, pay the penalty 3 – Take a hybrid approach

31. THE SEARS APPROACH • Discontinue health care • A flat payment to employees • Reflects tax effects • Employee free to buy wherever THE WALMART APPROACH • Newly hired part-time employees at Wal-Mart will have to work a minimum of 30 hours a week, • Elimination of some high premium plans, • Creating six health care centers, • Access to a healthcare advisor.

32. THE BENEFITS • Drop in Premiums!! Rise in Coverage!! • Small businesses excluded and get a tax credit • Business opportunities from growth in healthcare/bigger market • Easier for workers to move from jobs • Easier to budget • Potential less admin for small companies

33. So What’s Your Best 2013 Tax Strategy?

35. So What’s Your Best 2013 Tax Strategy? Defer (or accelerate) Income Tax Exempt Investments Section 179 $5,250 tax free education benefits to employees 529 Plans

36. PROBLEMS THAT WON’T GO AWAY • Potential “sticker shock”…why buy? • More docs opting out of taking insured patients • Potential arguments over rescinding • The viability of the “34 million” • State participation – Exchanges and Medicaid • Higher Taxes • No decrease in healthcare costs? • More government

37. RESOURCES Blue Cross Tax Calculator - http://www.bluekctaxcredit.com/taxcalculator.aspx Department of Health and Human Services – www.hhs.gov Healthcare Reform Site – www.healthcare.gov Washington Post Wonkblog: http://www.washingtonpost.com/blogs/wonkblog/

38. 2. Have A Mobile Strategy

40. Apple, Google, Microsoft Search Devices Elance, Guru, Craigslist Apps - Custom Square, Intuit, Sage, Microsoft, QuickBooks Apps – Out of the box Location 2. Have A Mobile Strategy

41. Have Dinner With Your Accountant Have A Mobile Strategy …

43. www.genemarks.com gene@marksgroup.net