Affordable Care Act - Small Biz

No. Only large employers will face penalties for not providing insurance to employees. Under the new ACA law, small businesses with less than 50 employees are exempt from the penalty for not offering coverage to their employees.
Small businesses that do offer insurance to its employees may qualify for a tax credit as an incentive.
For companies with at least 50 employees, there are penalties if the business does not offer health insurance.

Beginning in 2018, there will be a 40 percent excise tax levied on insurance companies when insurance premiums exceed certain amounts. This new tax won’t be levied on the employer unless they provide self-funded plans. The tax applies to the extent that yearly premiums exceed $10,200 for single coverage and $27,500 for family coverage.

You can claim the credit on IRS Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For detailed information on filling out this form, see the Instructions for Form 8941.
If you are a small business, include the amount as part of the general business credit on your income tax return.
If you are a small business employer, you may be able to carry the credit back or forward.

The statute requires an employer to withhold Additional Medicare Tax at a rate of 0.9 %on wages it pays to an employee in excess of $200,000 in a calendar year without regard to filing status.
A new line 5d has been added to Form 941.
The amount withheld will be reported with regular Medicare tax on Form W-2, Box 6.
Beginning January 1, 2013. An employer has this withholding obligation even though an employee may not be liable for Additional Medicare Tax Any withheld Additional Medicare Tax will be credited against the total tax liability shown on the individual’s income tax return (Form 1040).

An employer that does not deduct and withhold Additional Medicare Tax as required is liable for the tax unless the tax that it failed to withhold from the employee’s wages is paid by the employee.
Even if not liable for the tax, an employer that does not meet its withholding, deposit, reporting, and payment responsibilities for Additional Medicare Tax may be subject to all applicable penalties.

No. There is no employer match for Additional Medicare Tax.

An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages in excess of $200,000 to an employee.

To the extent that tips and other wages exceed $200,000, an employer applies the same withholding rules for Additional Medicare Tax as it does currently for Medicare tax.
An employer withholds Additional Medicare Tax on the employee’s reported tips from wages it pays to the employee.

When an employer deposits Additional Medicare Tax through the Electronic Federal Tax Payment System (EFTPS), when providing the deposit detail, regular Medicare tax and Additional Medicare Tax are entered as one combined amount.