December 18, 2009
The Kaiser Family Foundation has put together a nice overview of the House and Senate health care bills, including the portions that will affect payroll processing, should either pass.
The Senate is debating:
- Withholding more taxes. Increase the Medicare Part A tax rate on wages by 0.5% on earnings over $200,000 for individuals and $250,000 for married couples filing jointly.
- Remove tax-free status. Exclude the cost for over-the-counter drugs not prescribed by a doctor from being reimbursed through an HRA or Health FSA, and from being reimbursed tax-free through an HAS or Archer Medical Savings Account.
- More data tracking. Provide employers with fewer than 25 employees and average wages of less than $40,000 a health coverage tax credit of up to two years.
The House is looking for:
- More recordkeeping. Organizations will have to offer coverage to employees and contribute at least 72.5% of the premium cost for single coverage and 65% of the cost for family coverage of the lowest cost plan or pay 8% of payroll into the Health Insurance Exchange Trust Fund.
- Possible payroll deductions for premiums. Organizations offering coverage will have to automatically enroll into the employer’s lowest cost premium plan any individual who doesn’t elect coverage under that plan or doesn’t opt out.
- More data tracking. Provide employers with fewer than 25 employees and average wages of less than $40,000 a health coverage tax credit of up to two years.
More information - click here.
Source: Keep Up To Date on Payroll, January 4, 2010
Source: Keep Up To Date on Payroll
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