July 2015

July 2015

Small businesses that reimburse employees for the cost of premiums for individual health insurance policies or pay their health costs directly will be fined up to $36,500 a year per employee under a new Internal Revenue Service regulation that took effect July 1, 2015. According to the new rule, an employer arrangement that reimburses or pays for employee individual health premiums is considered to be a group health plan that is subject to the $100 per-employee per-day penalty. The penalty applies whether the reimbursement is considered a before-tax or after-tax contribution. The new penalty is more than 18 times greater than the $2,000 Affordable Care Act large employer-mandate penalty for not providing health insurance at all. Employers with fewer than 50 workers are not exempt, as they are from the employer-mandate penalty. The rule covers employers with more than one employee. Employers can exclude workers who have been with the company less than three years, are under age 25, or are part-time. S-corporations are exempt through the end of this year.

Rep. Charles Boustany has introduced legislation in the House (HR 2911) and Sen. Charles Grassley introduced legislation in the Senate (S 1697) to attempt to remedy this problem. Both bills are awaiting congressional action.

What Is The Estate Tax?
The estate tax is one component of the federal transfer tax system, which also includes the gift tax and the generation-skipping transfer tax.
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The Trust As Part Of An Estate Plan
To the layperson, trusts can appear complicated. People often think trusts are only for the very wealthy. In reality, trusts can be useful for people of all income levels.
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What Is Probate?
Probate is the legal process that takes place after someone dies of proving the validity of a will or establishing who is entitled to receive the decedent’s property under state intestate succession laws if there is no will.
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Who Are The Parties Involved In A Trust?
The person who creates a trust is called the creator, the settlor, or the grantor. The trustee is the person or persons who hold title to the trust property in their name.
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AICPA American Academy of Attorney CPAs Tax Attorney CPA, CFP®, Melville NY

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Lawrence Israeloff, Esq., CPA, CFP®

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