Penalty — that can be a scary word for an employer when it comes to taxes and insurance. SNESRUD fielded many questions.
Questions still linger for business owners and individuals when the Affordable Care Act is brought up. Dozens of area residents swarmed to H&R Block’s Affordable Care Act seminar Thursday night to try to get a better understanding.
Jocellyn Tumbleson went to the session looking for answers. She previously had insurance through Prudential and the marketplace was very confusing to her.
“It was not very thorough and I was frustrated,” she said.
The confusion led her straight to the ACA session.
“My income is very limited and I need more information on tax credits,” Tumbleson said.
Melody Snesrud, H&R Block franchise owner, who has a 22-year background in tax preparation, gave a step-by-step tutorial about ACA for individuals and employers.
In 2015 business owners can receive tax credits for providing insurance to their employees. They receive a credit if they have fewer than 25 full-time employees; pay wages averaging $50,000 or less; and pay 50 percent or more of employees’ premiums.
Employers with 50 or more full-time employees must provide coverage or accept a penalty. Larger employers may be subject to penalties if they do not offer coverage to full-time employees and employees’ dependents.
“The employer can be fined $2,000 per employee for not providing insurance,” Snesrud said.
Also, employers are required to give employees information about healthcare marketplace, Snesrud said.
Examples:
What happens to an employer who offers insurance but its pricey? An employer who offers insurance but doesn’t make it affordable can be charged a $3,000 penalty.
What if a person owns multiple businesses? A multi-business owner with the same ownership is covered as a single entity.
The crowd took an insurance shopping trip online with Snesrud.
At insureks.org tells whether a user is eligible for a tax credit. The tax credit calculator asks for the individual’s county, household size, annual income and number of household members. It then estimates a monthly premium, advanced tax credit and monthly cost.
A 35-year-old individual who makes $15,000 and lives in Allen County would have a monthly premium of $212, an advanced tax credit of $187 and a monthly cost of $25. A “helpth” report at www.hrblock.com also allows an individual to see if he or she is eligible for an advance tax credit.
When examining healthcare options on healthcare.gov, individuals are never asked about pre-existing conditions.
Snesrud has less than 25 employees at her business and began weighing her options for coverage. She was providing insurance for her employees, but found they could save by going through the marketplace, due to tax credits. Snesrud ultimately dropped her coverage for employees, and instead gave a wage increase to cover personal policy. Every situation is unique, however, and she said people need to look closely at the numbers.
“You have to do your homework,” Snesrud said.
Susan Booth, a certified enrollment specialist with McIntosh-Booth Insurance, said the marketplace gives people options.
“I was helping a lady with packages and she took the lowest plan which had a high deductible,” Booth said. “It may have been high but she was able to have insurance.”
Snesrud said people are able to change their insurance packages during enrollment if one isn’t working for them.
Tumbleson said she felt more reassured after the session.
“Now that I know how to go about it I’ll give it a shot,” she said.
Large turnout for information session
