As we all sit down to prepare for our annual tax filing, it is come to my attention that businesses of every size will be affected by the AFA. Everyone will feel additional pain with respect to the Affordable Care Act or Obama Care.
The small business owner will face new taxes on investment income and an additional Medicare tax. The Medicare tax is an increase of .9% for filers with income of at least $200,000 (assuming single status). There is a surtax of 3.8% on net investment income for earners above $200,000 (assuming single status).
Medium and Large companies - over 50 FTE’s- must report health insurance benefits to the IRS and to their employees for the first time beginning in 2016. In addition, there are a multitude of forms that employers must now provide to the IRS. Companies will need to devote resources in training, research, and reporting.
Most often, the small business owners do not have the time or resources to devote to understanding all the requirements of the ACA. Why should they? They have a business to run and it must be profitable. A credit is available to the small business owner to offset expenses but it is restrictive and has many requirements. It is imperative that the small business owner work with their CPA on this topic. Ignorance or failing to report the proper information to the IRS will bring unwanted attention. No one wants that to happen.
Health insurance will no longer be a free benefit received by anyone. We must all take note. For those who prefer an expert to take care of these issues rather than spending countless hours in a quagmire, my firm, Adroit Financial Solutions, specializes in financial services for businesses with fewer than 20 employees.
In addition to the AFA, our services include assisting clients with financial statements, strategic planning, budgets, fiscal analysis, accounts receivable review, accounts payable, cash controls, cash management, bank statement reconciliation, benefit and payroll management and risk management.
“Adroit services are flexible and we will work with you for as little as five to 10 hours a month depending on your needs,” said Black, founder of Adroit Financial Solutions. “Perhaps you are experiencing demands from employees, the government and/or customers. You are doing your best but know it would be helpful to have an expert come along side for a short period of time.”
For more information visit
www.adroitfinancialsolutions.info or call 480-231-1975 for an appointment.
Sally Marks is a public relations expert and author. Her client, Denise Black, is a CPA specializing in financial services for businesses with fewer than 20 employees.