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Making Sense of Health Care Reform: Seven Basics for Small-Business Owners

Health Care
White Paper

It is important to remember that health care reform is still being worked on and many of the changes will take years to implement. It isn't necessary for small business owners to understand every aspect of health care reform, but business owners should be familiar with the following six changes. These changes are presented to raise awareness of the impact that health care reform will have on small businesses.

  1. Small-Business Tax Credits – Understand how federal tax credits can help small businesses pay employee health-care insurance and employer health insurance premiums. Learn how to claim these tax credits and the eligibility criteria.
  2. The Grandfather Provision – Learn why Grandfathered plans are not subject to certain aspects of the Affordable Care Act. Understand which requirements are effected and who the Grandfather status applies to. What are the advantages and disadvantages of having a Grandfathered plan?
  3. Non-Discrimination – Learn how the non-discrimination measure will benefit people with health issues. Also learn how this measure affects highly compensated employees.
  4. FSA, HSA, and HRA Plans and Over-the-Counter Medicines – New guidelines have been set in place for FSA, HSA, and HRA plans. Although most are the same, some have new exceptions. Learn about these exceptions and claims for eligible expenses. Over-the-counter medicines are also affected by this guideline.
  5. Young Adult Coverage – Changes in the Affordable Care Act include changes in coverage for young adult dependents. Before the Act, there was a cap on how long a dependent child could be covered on an employee's health insurance. Learn what changes have been made to benefit employees with young adult children.
  6. W-2 Reporting – Changes in the way small businesses report health-care insurance on Form W-2. Who must file this change and who is exempt?
  7. The CLASS Program – How the voluntary long-term care (LTC) insurance program under the Community Living Assistance Services and Supports Program (CLASS) can benefit disadvantaged Americans. Gain an understanding of how this program plans to decrease reliability on Medicaid.
This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
Paychex is committed to providing resources to the Spanish-speaking community. To ensure we are providing the most up-to-date and accurate information, some content on this website will be shown in English, and will be provided in Spanish when available.