Intuit Confidential

What It Means for Individuals and

Small Businesses

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Meet your host…

2

Mike D’AvolioSenior Tax AnalystAccounting Professional Division

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• Requires individuals be insured

• Complicated and dense!

• Marks a historic precedent

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You need to be insured in 2014

Key Exemptions…

Financial hardship Lowest cost plan exceeds 8% of

your household income Your income is below tax-filing

threshold

Individuals without coverage for less than 3 months

And others…

Without insurance, you risk incurring a tax penalty

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You’ve got options…

Employer Broker Medicaid Health Exchange

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Businesses with 50 or more full-time employees must offer it

• Penalty: $2K/yr. for every employee starting with the 31st employee

Employer-sponsored insurance

Businesses with fewer than 50 full-time employees are exempt

Tax credits available for employers who offer insurance

• Eligibility: ≤25 employees; avg. wages ≤$50K; employer covers ≥50% of coverage

Affordable options are available (e.g. HRA, HSA)

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Health Exchanges

Public exchanges will be available in all 50 states

Plans have four levels of coverage: Platinum, Gold, Silver and Bronze

Subsidies available for those that are financially eligible

All plans offer “minimum essential coverage”

Private exchanges are an alternative

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Are you eligible for a subsidy?

Determine your household size

Determine your household income

If it falls within the guidelines relative to the Federal Poverty Line, you’re eligible:

Persons in household

Federal Poverty Line ($/yr.)

Income Level Premium as a Percent of Income

1 $11,170 Up to 133% FPL 2% of income

2 $15,130 133-150% FPL 3 – 4% of income

3 $19,090 150-200% FPL 4 – 6.3% of income

4 $23,050 200-250% FPL 6.3 – 8.05% of income

5 $27,010 250-300% FPL 8.05 – 9.5% of income

6 $30,970 300-400% FPL 9.5% of income7 $34,930

8 $38,890

1

2

3

Stay tuned for an Intuit subsidy calculator!

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Can’t afford insurance?

17%†

83%††

Meet Mary, a school teacher and a single mother with one child. She earns $45K a year. Based on her subsidy, the state covers 17% of her premium:

% of Premium Paid by Mary

Assumes annual premium of $5,160. †Amounts to $885; † †

Amounts to $4,275

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Common MythsMisconceptions and Facts About The ACA

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Myth #1

The penalty for not having insurance is insubstantial.

Fact: The penalty can be significant. In 2016…

• The penalty is the greater of $695/yr.

OR

• 2.5% of income

Examples:

Family of 4 earning $25K would pay $695

Family of 4 earning $100K would pay $2,500

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The penalty is phased in over time

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Flat fee portion % of household income portion

2014 $95 1%

2015 $325 2%

2016 $695 2.5%

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Myth #2

I don’t need to do anything until 2014.

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Fact: There are things you can do this year!

• April 15th, 2013: Keep your 2012 tax return as it will determine your subsidy-eligibility

• October 1st, 2013: You can start enrolling in a insurance plan on public exchanges

• January 1st, 2014: Make sure you’re insured!