Issue 27 – Healthcare Penalty Could Cost Businesses $36,500 Per Employee
December is the opportune time for organizations to reflect on the year that is coming to a close. It is a good opportunity to evaluate accomplishments and productivity and to celebrate the employees who worked hard to grow the company and serve its customers.
As the year draws to an end, it’s time for companies to tie up loose financial ends and prepare to close-out the fiscal year. Annual close-outs usually take place in January, to record and reconcile every last transaction and expense through December 31.
For government contractors with cost-reimbursement contracts there may be some discrepancies between their provisional rates and actual rates. Provisional rates are forward looking projected rates that are utilized for proposal preparation and for billing active projects.
When the Affordable Care Act was enacted in 2012, it gave companies with 50 or fewer employees the option to reimburse employees who purchase individual insurance from the Health Insurance Marketplaces rather than participate in a group plan. Effective January 1, 2014, this practice is no longer allowed.