Healthcare Helpful Articles Tax

Proposed Changes to the Affordable Care Act

The IRS has proposed changes to the Affordable Care Act’s family coverage and affordability rules. In a nutshell, the proposed regs would change how to determine the affordability of employer-sponsored coverage for an employee’s family.

More specifically, the affordability of family coverage would be based on the employee’s share of the cost of covering the family, not the cost of employee-only coverage. Employer-sponsored family coverage is considered affordable only if the employee’s portion of the annual premium for family coverage doesn’t exceed 9.5% of household income.

The regs would also add a minimum-value rule for family coverage based on the benefits provided to family members. Keep up-to-date on the latest tax information by visiting our news page

General Healthcare News

Supreme Court Blocks Vaccine-or-Testing Mandate for Large Employers

On Thursday, January 13, the U.S. Supreme Court blocked efforts by the Biden Administration to put a vaccine-or-testing mandate in place for large employers in a 6-3 vote. The mandate would have required proof of vaccination or weekly COVID testing for businesses that employ at least 100 individuals.

While a vaccine-or-testing mandate will not go into effect for general employers, employees of healthcare facilities that receive money through the Medicare and Medicaid programs must be vaccinated against COVID-19 by the end of February 2022, as decided in a 5-4 ruling.

For more details about the Supreme Court’s ruling on the vaccine-or-testing mandate, visit

Healthcare Helpful Articles

HHS Announces $25.5 Billion in Funding Available For Healthcare Providers

On September 10, 2021, the Department of Health and Human Services (HHS) announced $25.5 billion of additional funding will become available for healthcare providers affected by the COVID-19 pandemic. The funding is split between two funds: the American Rescue Plan (ARP) and the Provider Relief Fund Phase 4 (PRF). $8.5 billion from the ARP will be available for providers that serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicaid patients in rural areas. The PRF will provide the other $17 billion available for a wide range of providers that can provide evidence of revenue losses due to the pandemic between July 1, 2020 and March 31, 2021. Providers with a smaller number of patients and providers that serve Medicaid, CHIP, and Medicare patients are eligible for bonus payments. 

Here are the highlights:

  • Healthcare providers can apply for $25.5 billion in relief funds starting September 29, 2021.
  • Phase 4 payments will be based on providers’ lost revenues and expenditures between July 1, 2020, and March 31, 2021.
  • Phase 4 payments will reimburse smaller providers at a higher rate than larger providers and include bonus payments for providers who serve Medicaid, CHIP, and/or Medicare patients, who tend to be lower income and have greater and more complex medical needs.
  • Providers can apply for both the PRF and ARP programs in one application.

For more information, read the press release from the Department of Health and Human Services: 


Sick and Family Leave Tax Credit

Are you self-employed and a survivor of COVID-19? If so, you may be able to claim a sick and family leave tax credit under the Families First Coronavirus Response Act. The law allows certain self-employed individuals, who due to COVID-19 were unable to work or telework for reasons related to their health, to claim the refundable credit to offset their federal income tax.

The credit also applies to those unable to work or telework due to caring for a child with COVID-19. To claim the credit (up to $5,110) for 2020, the leave must have been taken between April 1, 2020, and Dec. 31, 2020. We’ll help determine your eligibility and file a form to claim the credit when we prepare your return. Contact your ATA representative for more information. 

Healthcare Tax

Next Estimated Tax Deadline For Those That Have To Make Payment

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The fourth 2020 estimated tax payment deadline for individuals is Friday, January 15, 2021. Even if you do have some withholding from paychecks or payments you receive, you may still have to make estimated payments if you receive other types of income such as Social Security, prizes, rent, interest, and dividends.

Pay-as-you-go system

You must make sufficient federal income tax payments long before the April filing deadline through withholding, estimated tax payments, or a combination of the two. If you fail to make the required payments, you may be subject to an underpayment penalty as well as interest. In general, you must make estimated tax payments for 2020 if both of these statements apply: You expect to owe at least $1,000 in tax after subtracting tax withholding and credits, and you expect withholding and credits to be less than the smaller of 90% of your tax for 2020 or 100% of the tax on your 2019 return — 110% if your 2019 adjusted gross income was more than $150,000 ($75,000 for married couples filing separately). If you’re a sole proprietor, partner, or S corporation shareholder, you generally have to make estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.

Quarterly due dates

Estimated tax payments are spread out through the year. The due dates are April 15, June 15, September 15, and January 15 of the following year. However, if the date falls on a weekend or holiday, the deadline is the next business day. Estimated tax is calculated by factoring in expected gross income, taxable income, deductions and credits for the year. The easiest way to pay estimated tax is electronically through the Electronic Federal Tax Payment System. You can also pay estimated tax by check or money order using the Estimated Tax Payment Voucher or by credit or debit card.

Seasonal businesses

Most individuals make estimated tax payments in four installments. In other words, you can determine the required annual payment, divide the number by four and make four equal payments by the due dates. But you may be able to make smaller payments under an “annualized income method.” This can be useful to people whose income isn’t uniform over the year, perhaps because of a seasonal business. You may also want to use the annualized income method if a large portion of your income comes from capital gains on the sale of securities that you sell at various times during the year.

Determining the correct amount

Contact us if you think you may be eligible to determine your estimated tax payments under the annualized income method, or you have any other questions about how the estimated tax rules apply to you. © 2020

Dyersburg, TN Financial News General Healthcare Henderson, KY Henderson, TN Jackson, TN Martin, TN Memphis, TN Milan, TN Murray, KY Nashville, TN Owensboro, KY Paris, TN Trenton, TN Tupelo, MS Union City, TN

PPP Data Collection Spreadsheet

*As of 4-28-20

View this updated PPP loan forgiveness workbook that can benefit your business. Consider gathering as much information as possible now by using the PPP loan forgiveness data collection form. Click here to download the spreadsheet.

Healthcare Helpful Articles

Increasing Patient Engagement in Your Practice

Increasing Patient Engagement in Your Practice

Many patients want to be involved in managing their health care. Empowering patients to schedule their own appointments and manage correspondence, refills, and prior authorizations can lead to higher levels of patient engagement and satisfaction. Patient engagement initiatives have been found to reduce hospital visits, decrease morbidity and mortality rates, improve treatment adherence, and reduce costs. How can your practice attain higher levels of patient engagement? The answer lies in how your practice incorporates technology into its day-to-day operations. Technology can play a major role in helping medical practices improve patient engagement levels.

Technology Is Key

Incorporating a technology-based infrastructure to handle a variety of typically labor-intensive tasks can help increase patient engagement. Not every patient will respond favorably to conducting health care interactions online, but patients who are already comfortable with technology will likely embrace the opportunity. Areas where utilizing technology may be beneficial include:

Online scheduling. Appointment cancellations can impact both a practice’s schedule and its revenues. Giving patients the convenience of scheduling their own appointments online may lead to lower no-show rates.

Check-in. Allowing patients to use kiosks or tablet computers to enter personal information and other relevant data before their scheduled appointment can help expedite and streamline the check-in process and increase efficiency levels throughout the practice.

Online care. Many time-consuming routine interactions, such as data collection, can be performed more efficiently online. Portals designed to allow patients to view test results and ask questions related to their care save time and increase patient satisfaction levels.

Off-site Monitoring

Devices that allow patients to monitor information related to their medical conditions and relay the data electronically can foster greater understanding among patients about how lifestyle decisions impact their health. Engaged patients may be more likely to comply with medical treatments.

Patient engagement initiatives have been found to reduce hospital visits, decrease morbidity and mortality rates, improve treatment adherence, and reduce costs.

Please let us know how we can help with your accounting and essential business service needs.

Healthcare News

October 1 Healthcare Reform Deadline : Employers Must Mail Letters to All Employees about Exchanges by Oct. 1

Employers Must Mail Letters to All Employees about Exchanges by Oct. 1, 2013

Most employers — even those with just one employee — are required to send a notice to all employees via first-class mail by Oct. 1 informing them about the new public health insurance exchanges. This notification requirement applies to companies with at least one employee and $500,000 in annual revenue. The letters must be sent to all employees, full-time, part-time and temporary regardless of their benefits plan status. After Oct. 1, new employees must receive the letter within 14 days.

The letters must inform employees that the exchange exists and provides details to help employees understand how the exchange could help them. They must include these specific items:

  • The existence of the exchange;
  • A description of the services provided by the exchange;
  • How to contact the exchange to request assistance;
  • The employee’s potential eligibility for subsidized coverage on the exchange if your company’s group health plan doesn’t provide “minimum value,” which means the plan’s share of the total allowed cost of benefits provided under the plan is less than 60 percent of such costs; and
  • The fact that the employee may lose the employer contribution (if any) toward health insurance coverage if he or she chooses to purchase individual coverage on the exchange.

It is not permissible to use electronic means to send the letter.

If you have any questions or need assistance about implementing these mandates, don’t hesitate to call us.

Healthcare News Tax

Businesses to Provide Health Care Benefits Information : Provide Health Care Benefits Information on W-2

Businesses to Provide Health Care Benefits Information

Under the Patient Protection and Affordable Care Act, employers that sponsor group health plans, along with their insurers, must provide health plan participants and beneficiaries with clear and understandable information about their plans so that they can make informed decisions when choosing coverage. Below, we discuss what this new “Summary of Benefits and Coverage” (SBC) disclosure may mean for you.

For employer-sponsored group health plans, the insurance issuer is required to provide the SBC to the sponsoring employer. The employer and the insurer are responsible for providing the SBC to plan participants and beneficiaries. In the case of a self-insured group health plan, the plan administrator must provide the SBC to participants and beneficiaries.

An SBC generally is not required for standalone dental and vision plans, health flexible spending arrangements (FSAs), and health savings accounts (HSAs). Health reimbursement arrangements (HRAs), however, are subject to the SBC rules.

When Disclosures Are Required

You generally must provide enrolling or re-enrolling employees and beneficiaries with the SBC beginning on the first day of the first open enrollment period or first plan year that begins on or after September 23, 2012. Thus, for most employers, initial SBCs are required for the 2013 open enrollment period. The SBC also must be furnished to COBRA beneficiaries during the open enrollment period. Your insurer should make the appropriate SBC(s) available to you.

Employees and beneficiaries entitled to special enrollment rights (for example, under HIPAA) must receive the SBC within 90 days after enrollment. Plans and insurers that automatically renew coverage, rather than requiring re-enrollment, must furnish the SBC no later than 30 days prior to the first day of the new plan or policy year. You also must provide the SBC to employees and beneficiaries who request the SBC or summary information about health coverage as soon as is practicable but no later than seven business days following receipt of the request.

The SBC should be a part of any written application materials. A separate SBC must be provided for each benefit package option (e.g., PPO versus HMO) you offer employees. However, you may, but don%u2019t necessarily have to, furnish an SBC for each coverage tier (for instance, self-only or family coverage) or cost-sharing selection (such as deductibles, copayments, and coinsurance) under a benefit package.

SBC Content

Basically, the SBC should contain uniform definitions of standard insurance and medical terms; a description of coverage, including cost sharing for each category of benefits; any exceptions, reductions, and limitations on coverage; coverage examples of common benefit scenarios; a statement that the SBC is only a summary and that the plan or policy controls; contact information for questions and obtaining a copy of the plan documents, insurance policy, certificate or contract of insurance; and an Internet address (or similar contact information) for obtaining a list of network providers, prescription drug coverage information, and the insurance and medical terms glossary. The DOL has a sample SBC on its website.

Failure to comply with the SBC requirements can result in a daily penalty of up to $1,000 per willful failure, per participant and an excise tax of $100 per day for each participant who should have received the SBC.

Please call the ATA Team to help answer any questions.