Out-of-pocket medical expenses can be a burden for many and in the next year the burden could become worse. Beginning in 2013 as part of Obamacare, the floor for deducting medical expenses on your Form 1040, Schedule A, increased from 7.5% of your Adjusted Gross Income (AGI) to 10% of your AGI. Seniors are defined as age 65 or older, and are exempt from the increase through the end of this calendar year.
So what happens after December 31, 2016, for seniors?
The IRS recently released the 2017 annual deduction limits for health savings accounts (HSA), which are typically adjusted each year for inflation.
The 2017 limits are $3,400 for an individual with self-only coverage and $6,750 for an individual with family coverage. Such deductible contributions can only be made to an HSA that is maintained in conjunction with a high-deductible health plan.
One of the fundamental goals of the Affordable Care Act “ACA” is health coverage for all. With that goal comes new reporting requirements for employers and insurance companies offering health coverage. The IRS recently released drafts of the forms that will be used to report 2015 coverage information in early 2016.
Employers with more than 50 full-time equivalent employees will be required to use Form 1095-C to report whether or not they offered health coverage to their employees. The Form 1095-C that employees receive from their employer will include information on the months the employee was offered coverage and the employee’s share of the lowest cost monthly premium for self-only “minimum value” coverage. The employer will transmit the Form 1095-Cs, via Form 1094-C, to the IRS.
With 2014 quickly approaching, now is a better time than ever for government contractors to begin thinking about the development of budgeted indirect rates for the upcoming year. Let’s discuss a few critical reasons for why government contractors need to pay close attention to the development and submission of these rates. As a contractor, potential bid and proposal opportunities are constantly being explored. With these prospective bids on the horizon, it is important to know your competitive range in today’s economic environment when competition is tighter than ever. This competitive range, also known as the wrap rate before fee, is calculated based on the indirect rates of your company. As a contractor, asking yourself a few vital questions are imperative to developing a competitive set of rates. Is your current indirect rate structure set up to increase your competitiveness? Do you anticipate the need to expand your pools and bases for new business or contractual requirements? How are the economics of today going to affect your indirect rates for the coming year? Have impacts on historical overhead and G&A affected your rates in a positive or negative way?
As a follow-up to Aronson’s webinar on Advanced Service Contract Act Compliance and Impacts of ACA, we provided answers to several attendee questions below.
If DOL’s conformed wage rate determination is higher than the contractor-proposed wage rate, can I apply for a modification to the contract?
If DOL determines the proposed rate for a conformed labor category must be higher, then a modification to increase the total value of the contract can be requested.