Archive for July, 2012

PCS’ Customer Satisfaction Surveys

Friday, July 27th, 2012

PCS has a new client satisfaction survey process!

Previously, PCS called clients annually to ask for feedback through a short survey over the phone.  In an effort to make these more efficient for us and more convenient for our clients, going forward we will be sending these survey requests to you through electronic tools that allow us to conduct and manage the entire survey process.  Surveys will only take a few minutes to complete and there will be a quarterly drawing with gift card prizes to show our appreciation for your honest feedback.

Please watch for these surveys and know how valuable your honest feedback is to help us maintain high standards for the service we offer.

If you have any questions or concerns about the survey, please don’t hesitate to contact your Client Account Manager or our Quality Assurance Manager at 763-513-5951.

Minnesota Law Change for Individual Construction Contractors – 2% Withholding

Tuesday, July 24th, 2012

Update from the Minnesota Department of Revenue:

Taxes2% Withholding Repealed

After June 30, 2012, Minnesota businesses are no longer required to withhold 2 percent from payments made to individual construction contractors. This withholding requirement was repealed under 2012 Minnesota Laws, Chapter 295, Article 2, Section 13 (c).

Voluntary Withholding

While the 2 percent withholding requirement no longer applies, individual construction contractors may ask to have state income tax withheld from wages or payments they receive. The payer may agree to this withholding, but isn’t required to do so. For more information, see Voluntary Withholding.

Filing the Return

The Minnesota Withholding Tax return will be updated to reflect this law change for the third-quarter filing period (July 1 – Sept. 30, 2012). From that point on, report any withholding from payments to individual construction contractors in the “Tax Withheld” field on the return.
To file a Minnesota Withholding Tax return, log in to e-Services. For filing instructions and other information, click the “Help” or “FAQ” links on the login page.

Note

Prior to the July 1 – Sept. 30, 2012 filing period, 2 percent individual construction contractor withholding was reported in e-Services on a quarterly basis. There is a check box on these quarterly returns to indicate the 2 percent withholding.
For more information you can go to the MN Revenue website (www.revenue.state.mn.us) and see “Law Change for Individual Construction Contractors” under the What’s New tab in Withholding Tax or click here.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Large Businesses and the Affordable Care Act

Monday, July 23rd, 2012

Health Care Reform LargeThe Affordable Care Act was enacted on March 23, 2010.  It contains some tax provisions that are in effect and more that will be implemented during the next several years.

What is considered a large business?

You are generally considered a large business if you have more than 50 employees.

Do I have to provide health insurance to my employees?

The law does not require employers to provide health insurance.  Starting in 2014, large businesses (those with 50 or more full-time workers) that do not provide adequate health insurance will be required to pay an assessment if their employees receive premium tax credits to buy their own insurance.  These assessments will offset part of the cost of these tax credits.  The assessment for a large employer that does not offer coverage will be $2,000 per full-time employee beyond the company’s first 30 workers.

 Do I have to report the cost of insurance on my employees’ W-2 forms?

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD.  Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.  The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee’s income, and it is not taxable.  This reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers.

Here are two great resources for more information:

The Health Care Law and You

Affordable Care Act Tax Provisions

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Small Businesses and the Affordable Care Act

Monday, July 23rd, 2012

Health Care ReformYou know the value of providing health insurance to your employees but it can be a real challenge for small businesses. On average, small businesses pay about 18% more than large firms for the same health insurance policy because small businesses lack the purchasing power that larger employers have. The Affordable Care Act provides tax credits, and soon, the ability to shop for insurance in Exchanges that may help close the gap.

Top Things to Know for Small Businesses

  • For tax years 2010 through 2013, the maximum credit is 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities.
  • If you have up to 25 employees, pay average annual wages below $50,000 per employee, and provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance.
  • Employer-based plans that provide health insurance to retirees ages 55-64 can now get financial help through the Early Retiree Reinsurance Program. This program is designed to lower the cost of premiums for all employees and reduce employer health costs.
  • Starting in 2014, the maximum small business tax credit increases to 50% for qualifying businesses, (35% for non-profits).
  • In 2014, small businesses with generally fewer than 100 employees can shop in an Affordable Insurance Exchange, which are designed to make buying health coverage easier and more affordable.
  • Exchanges will offer a plans that meet certain benefits and cost standards and can help you look for and compare private health plans, get answers to questions about your health coverage options, determine tax credit or health program eligibility, and will allow you to enroll in a health plan that meets your needs.
  • Employers with fewer than 50 employees are exempt from new employer responsibility policies.

Here are two great resources for more information:

Health Care Law and You

Affordable Care Act Tax Provisions

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Individuals and the Affordable Care Act

Friday, July 20th, 2012

Health CoverageOne of the goals of the Affordable Care Act is to help improve care and lower costs for healthy individuals as well as people with health conditions.

Healthy Individuals

Even if you’re healthy now, sooner or later there will come a time when you will need health insurance.  Lack of coverage can result in large financial setbacks and worrying about the cost of your care is the last thing you want to do when faced with injury or illness.  Expanding your options for health insurance and making them more affordable is one of the main objectives of the Affordable Care Act.

Top Things to Know for Healthy Individuals

Individuals with Health Conditions

If you have a health condition, you know how important having health insurance is and how expensive it can be.  Worrying about where to get coverage and the cost of your care is the last thing you want to do when you are dealing with chronic illness.

Top Things to Know for Individuals with Health Conditions

Here are two great resources for more information:

Health Care Law Overview

Affordable Care Act Tax Provisions

From grants to new services and programs, find out how the Affordable Care Act is affecting you where you live:  http://www.healthcare.gov/law/resources/index.html

Article By:

PCS Client Services Team

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.