Certified Public Accountants www.meridianbusiness.com

1. “COMMITTED TO OUR CLIENT’S SUCCESS” Members of associations: Chamber of Commerce – Paola, Louisburg and Leawood AICPA Kansas Society of CPAs Missouri Society of CPAs EKOGA Affordable Care Act There are many changes happening in the upcoming years now that the Supreme Court has upheld the Affordable Care Act (ACA). Here are a few items that you should know…. Medicare Surtax (2014): If you are single and make $200,000 a year ($250,000 a year if you are married), you will be required to pay an additional .9% on your earnings come tax time. In addition, you may be required to pay a new 3.8% tax on a portion of your capital gains and dividends. Mandate on insurance (2014): Individuals must be insured or pay a penalty. Penalties start at $285 per family or 1% of income, whichever is greater and increase each year. Mandate on businesses (2018): Insurers of employer-sponsored plans (or companies with self insured plans) will be subject to an excise tax if their plan costs tops $10,200 for individual coverage and $27,500 for family coverage. There will be a cap on the amount a worker can contribute to their flexible spending account beginning in 2013. You can only contributed up to $2,500. Prior to 2013, there is no limit on this plan. The penalty increased on health care spending accounts. If you spend those funds on non-qualified expenses, the penalty is now 20%. That provision went into effect in 2011. Another change for 2013 is the change on medical expense deductions on your tax return. Previously, you could deduct expenses that exceeded 7.5% of your adjusted gross income (AGI). Now, you can only deduct expenses that exceed 10% of your AGI. The increase is waived for tax years 2013 through 2016 if you are 65 or older. For companies, the penalties are stiff. For companies with 50 or more full-time employees, employers must provide health insurance by 2014 or face penalties starting at $40,000. In addition, employers must cover 60% of the health care costs, and the insurance cannot cost the employee more than 9.5% of his or her family’s salary. Locations: Leawood 11115 Ash Leawood, KS 913-387-5515 Louisburg 303 S Olive Louisburg KS 913-837-4230 Paola 310 N Hospital Dr Paola, KS 913-294-3713 Certified Public Accountants www.meridianbusiness.com