Archive for the ‘Insurance & Liability’ Category

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Employee Health Cover Forms….

In Accounting & Finances,Business,Human Resources,Insurance & Liability,Taxes on December 2, 2014 by Sufen Wang

untitledAn Apple a Day Sure Doesn’t Keep Paperwork Away: IRS Releases Draft Employee Health Coverage Forms
With health care, comes a huge stack of forms to fill out – generally when you’re not feeling too well in a waiting room surrounded by folks who aren’t lookin’ too good either. Unfortunately, the IRS is adding to the paper stack with draft versions of Form 1094–B, Form 1095-B, Form 1094-C, and Form 1095-C.
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First Aid KitAlthough these forms for reporting employee health coverage don’t have to be filled out in the ER lobby, employers will have to spend time completing several of them – which will take precious time away from business operations. And these forms arrive on the coat-tails of the already in-effect requirement for employers to report the cost of health insurance on Form W-2.
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inoutWhere did this lovely paperwork come from? The Affordable Care Act requires that employee health plans meet certain requirements, with the reporting rules set by tax code sections 6055 and 6056. Down the road, employers with 50 or more full-time / full-time equivalent employees will be penalized if they don’t offer health coverage which meets minimum value and affordability standards. goodgriefTo prove that everything is A-okay, employers will have the pleasure of filling out Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. Health insurance companies get to fill out Form 1094–B, Transmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage. 
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Stress-test-cartoonIf it sounds confusing, it’s because it still is. Keep in mind that these are draft forms, with no instructions available yet. According to the IRS, “In accordance with the IRS’ normal process, these draft forms are being provided to help stakeholders, including employers, tax professionals and software providers, prepare for these new reporting provisions and to invite comments from them. The draft instructions relating to the forms were posted to IRS.gov in September. Both the forms and instructions will be finalized by the end of this year.” All this means that the paperwork still needs work in 2014, and thus reporting is voluntary, but there’s no avoiding it when it’s set in stone in 2015. 
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Sufen Wang, M.S.Accountancy
Wang Solutions, Long Beach, CA (562) 856-0793
Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

Articles

Tax Relief for Hurricane Sandy Victims…

In Accounting & Finances,Business,Culture,Family,Insurance & Liability,Taxes on November 23, 2012 by Sufen Wang Tagged: , , , , , , ,

Hurricane Sandy Qualifies as a Disaster: Victims Given Much-Needed Tax Relief

Just because Hurricane Sandy has disappeared from the Doppler radar does not mean its aftermath dropped off the map. Almost a month has passed, but many East Coast residents are still picking through debris on their lawns and others will be homeless for the holidays. The storm really was a disaster in many ways – which is why it has been designated as a “qualified disaster for federal tax purposes.”

That’s actually good news: victims can exclude qualified disaster relief payments received from their employer (or anyone else for that matter) from their taxable income. So any payments used to repair homes or repair/replace the contents not covered by insurance, would not be included in the individual recipient’s gross income. This is also the case with any payments received for uninsured personal, family, living, or funeral expenses resulting from the storm. As a result, hurricane victims won’t have to worry about paying extra later when they’ve already lost so much.

Hurricane Sandy being named a “qualified disaster” will also help anybody trying to help the storm’s victims. Now, employer-sponsored private foundations can provide disaster relief to employee-victims in areas affected by the hurricane without having to worry that their tax-exempt status will change. An official list of those affected areas can be found here.

This tax relief is nice, but assistance for Hurricane Sandy victims shouldn’t stop there. Every cent does count, so donate whatever you can. Or if you don’t have a lot of money, volunteer a little of your time. It’s the season of giving after all.

Happy Thanks–Giving…. 

Sufen Wang 

Wang Solutions

Articles

Breast Cancer Awareness Month….

In Culture,Education,Family,Insurance & Liability on October 9, 2012 by Sufen Wang Tagged: , , , ,

Pay Attention!: October is Breast Cancer Awareness Month

 

Take a break from buying Halloween candy early (and eating it) and listen up, because October is Breast Cancer Awareness Month. It’s no exaggeration to say that learning about breast cancer could end up saving your life or the life of someone you love.

 

Certain things increase the risk of breast cancer. Some are avoidable, such as obesity, alcohol, and exposure to radiation. So, stay far away from Halloween candy, Happy Hour, and anything with a nuclear symbol on it. However, other factors, such as estrogen and inherited risk, are unavoidable. That’s where protective factors come in. Exercising for at least four hours per week is the best thing you can do for your body, even if you’re not at a high risk for breast cancer.

 

Don’t go for a walk just yet though without reading further– unless you’re walking to your doctor’s office. Yup, get ready to bare those breasts, because women (especially over 40) need to get regular screenings for breast cancer. If cancer is found early, there’s a much better chance of successful treatment. That means there’s no excuse for not getting a mammogram every 1 to 2 years. And if you notice any strange lumps before your next mammogram, ask your doctor to do a clinical breast exam (CBE) immediately.

 

This year, an estimated 226,870 women and 2,190 men will be newly diagnosed with breast cancer. However, it’s important to remember that breast cancer can be treated, and there are many different options. Some of these include surgery, such as a lumpectomy or a mastectomy, radiation therapy, chemotherapy, and hormone therapy, and even more treatments are being tested as we speak.

 

Your awareness of breast cancer shouldn’t stop once you stop reading this page. It’s your turn to spread the word. One way you can do that is with the Pink Ribbon Kit, which provides free (yes – free!) publications about mammography screenings. Or you can direct everyone you know to the MedlinePlus breast cancer page, which has a ton of resources to explore. Stay aware and stay healthy!

 

On Your Health, Sufen Wang, Wang Solutions

Articles

Get a Summer Job!

In Accounting & Finances,Business,Culture,Education,Family,Insurance & Liability on July 31, 2012 by Sufen Wang Tagged: , , , , , , ,

At first, working during the summer sounds awful to most young adults. Then they usually stop complaining when their first paycheck arrives. However, they usually start complaining again once they realize that with income, comes taxes.

Meet Form W-4: Employee’s Withholding Allowance Certificate. This form is used by employers to determine the amount of tax that will be withheld from your paychecks to cover your income tax liability. You, along with everybody else, must fill out a W-4 when you start a new job – even if you work at that job for just one day.

Maybe you were lucky and found work as a waiter. Dealing with customers is difficult, but it also means you can get extra money from tips, and who’s going to say no to free,extra money? Unfortunately, you can’t just pocket your tips and forget about them– all tips you receive are taxable income which you must report. 

Perhaps you decide you want to be your own boss for the summer. You start doing odd jobs around town: babysitting, mowing your friend’s dad’s lawn, walking your neighbor’spoodle up and down the street. Congratulations on being a young entrepreneur,but the earnings you receive from self-employment are still subject to income tax. And if you end up mowing a lot of lawns and make $400 or more from self-employment, you’ll have to pay a self-employment tax.

If you get a job as paperboy (or girl), at least you’ll be done with work by the time most of America wakes up for work. And teens have special rules when it comes to federal taxes. Because newspaper deliverers are generally treated as self-employed, they have to pay the self-employment tax. However, if you’reunder 18, and you don’t meet all of the carrier self-employment conditions, you are exempt from that tax.

Everyone has to start working at some point. If you have nothing do this summer except wait for school to start, then you might as well start mowing some lawns! 

On the Money,

Sufen Wang

Wang Solutions

Articles

Weather the Storm:

In Accounting & Finances,Business,Insurance & Liability on September 11, 2011 by Sufen Wang Tagged: ,

Safeguard Your Financial Records against Rain, Sleet, and Snow…
 

It’s hurricane season. You have an evacuation plan, but will your financial/tax records and valuables also survive when disaster strikes?

Reconstructing records after a disaster is often essential for tax purposes, receiving federal assistance, and insurance reimbursement.

Taking the time to protect your data will save you a flood of tears when the storm clouds finally clear.

 
 The personal and business records you’ll need in order to prove your loss could be damaged – or even destroyed – in an emergency. You can safeguard your bank statements, tax returns, insurance policies, etc., by creating and frequently updating a backup set of records. This is much easier now that financial institutions provide electronic statements and make most of your financial information available online. Even if you only have paper copies of the original records, you can quickly scan these documents onto your computer.
 
Once all your information has been converted to an electronic format, just transfer it to a backup storage device, such as an external hard drive. Another option is to burn the files to a CD or DVD and create multiple copies. Along with many affordable online backup systems, many websites also offer free online storage with ample space for your electronic records; you can easily restore or access your files and keep them current with no hassle. Whether you do one or all of the above, ALWAYS insure that your data is password protected and kept in a secure location!
 
 For a full list of tips on preparing for a hurricane and other disasters…
 
check-out IR-2011-59.
 
On the Money,
Sufen Wang
Wang Solutions
 

Articles

The Affordable Care Act Gets a Check-Up…

In Accounting & Finances,Business,Insurance & Liability,Taxes on August 29, 2011 by Sufen Wang Tagged: , , , ,

IRS Prescribes Premium Tax Credit Regulations
 
There’s some good news and bad news this month. The good news is that the IRS proposed regulations on August 12 for health care premium tax credits – which means affordable healthcare is one step closer to becoming a reality. The bad news is that the IRS proposed regulations for health care premium tax credits – which means you might be ineligible to receive them.
 

The health insurance premium tax credits were created under the Patient Protection and Affordable Care Act (ACA) of 2010. When the ACA goes into effect in 2014, individuals who are unable to access affordable health insurance through their employers will be able to buy insurance through state-run insurance exchanges. The tax credit is geared toward lower and middle-income individuals who can’t afford to pay their premium costs out-of-pocket.

Of course, calculating the credits will be another task for tax return preparers…..

So who exactly can get the tax credit? The IRS regulations say you must be an applicable taxpayer with a household income between 100 percent and 400 percent of the federal poverty line. That’s about $22,350 to $89,400 for a family of four. Applicable also means you can’t be claimed as a dependent by another taxpayer and if you’re married, you have to file a joint return. The tax credits will average $5,000 per individual.

You also won’t be eligible if you have “minimum essential coverage” available through your employer. Under the ACA, businesses with more than 50 full-time workers over the course of a year will face tax penalties of up to $3,000 per employee if they fail to offer affordable coverage (the regulations help define affordable). Employers must report which employees are not covered by insurance and are thus eligible to participate in health insurance exchanges.

The IRS wants to hear what you think about the proposed regulations! Give them a piece of your mind by October 31:

 http://www.regulations.gov/ 

via e-mail at E-OHPSCA2715.EBSA@dol.gov.

On the Money,
Sufen Wang
Wang Solutions