Park City, Utah (PRWEB) February 11, 2013
Today, Zane Benefits, Inc. published new information on CPAs and Healthcare Reform. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.
According to Zane Benefits’ website, the Affordable Care Act (ACA) requires CPAs to be experts on the key provisions of health care reform. For example, tax professionals are going to be required to help clients consider whether it will be more valuable for them to go to a state exchange or a private insurer based on how many FTEs they have. Here's how Health Care Reform affects the role of the CPA.
Health Care Reform Increases CPA's Role in Health Insurance Decisions
According to Zane Benefits’ website, the primary shift in the role of the CPA will center on assisting corporate clients in determining:
- The size of the business based on Full-Time Equivalent Employees (FTEs) vs. annual revenue, and
- The amount of any applicable business tax credits and penalties.
Also, CPAs will be required to help individual clients consider:
- Whether it will be more valuable for them to go to a state exchange or a private insurer based on household size and income, and
- The amount of any applicable individual tax credits and penalties.
Overview of the Key Tax Provisions of Health Care Reform
According to Zane Benefits’ website, CPAs need to understand the following tax-related provisions of health care reform:
1. Health Flexible Spending Account (FSA) Limitation
According to Zane Benefits' website, effective January 1, 2013, a maximum election limit will be placed on the amount an employee can contribute to a health Flexible Spending Account (FSA). The maximum election limit will be $2,500 per participant. It is important to note that this limit only applies to pre-tax contribution by an single employee (i.e. A husband and wife may each elect $2,500 if they participate in separate FSA plans). Similarly, an employer may make contributions to an FSA above and beyond the $2,500 limit. Beginning in 2014, the maximum election limit will be indexed to the CPI.
2. Medical Expense Deduction Threshold Increase
According to Zane Benefits' website, Effective January 1, 2013, unreimbursed medical expenses will be deductible by taxpayers under age 65 only to the extent they exceed 10% of adjusted gross income (AGI) for the tax year.
3. Employer W-2 Reporting Requirements
According to Zane Benefits' website, as part of the ACA, employers are required to report the cost of health benefits coverage under an employer-sponsored group health plan.
4. Employer Form 720 Reporting Requirements
According to Zane Benefits' website, Section 4376 of the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, imposes a temporary annual fee on a plan sponsor of an applicable self-insured health plan (including certain health reimbursement arrangement, or HRA plans) for each plan year ending on or after October 1, 2012, and before October 1, 2019. Employers must file Form 720 annually to report and pay the fees.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangement (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.