Important new legislation affecting employers   The Patient Protection and Affordable Care Act – March 23, 2010     ·        2010 – Phase I of the Small Business Tax Credit for qualified small employers for contributions to purchase health insurance for employees. The credit is up to 35 percent of the employer’s contribution to provide health insurance for employees. There is also up to a 25 percent credit for small nonprofit organizations. ·        2011 – Amounts for Employer paid health insurance premiums must be reported on form W-2 ·        2011 – Simple Cafeteria Plan becomes available ·        2013 – Medicare withholding for single people earning over $200k  ($250k married) increases from 1.45% to 2.35% ·        2014- Employers with 50 or more employees required to offer coverage or face stiff fines. ·        2014- Phase II of the Small Business Tax Credit – tax credits up to 50% of the employer’s contributions                 HIRE Act – March 18, 2010   If you hire a new employee that has been unemployed for the last 60 days, you will be exempted from paying the 6.2% employer matching FICA-Social Security tax. If you retain the employee for 52 weeks and their pay in the second half of this time is at least 80% of their pay in the first 26 weeks, the company will receive a credit of up to $1000 for each worker. Full time and part time employees qualify The new hire must sign an affidavit, under penalty of perjury, that they have not worked more than 40 hours during the last 60 days. No family members are allowed.     2010 Temporary Extension Act -  March 2, 2010   Employees terminated involuntarily through March 31, 2010 can obtain COBRA health insurance coverage using the 65% premium subsidy (old date was February 28, 2010), which applies to employers with 20 or more employees. Employers are refunded the 65% as a payroll tax reduction.   Ohio’s “Mini-Cobra” has been extended as well to coincide with the federal extension dates. The subsidy is handled by the insurance company, not through payroll.