Posts Categorized: Tax Issues

COLA Increases

in Health Benefits, Tax Issues

The Social Security Administration released today the COLA increase for social security withholding and social security benefits. SSA Release Link. COLA increases from the IRS should not be far behind. But, no guidance yet on how to administer the new 0.9% Medicare tax withholding for 2013.

PCOR Fee Proposed Regulations

in Affordable Care Act, Tax Issues

Yesterday, Treasury released proposed regulations that establish standards for the PCOR Excise Tax.  The PCOR Excise Tax impose fees on issuers of certain health insurance policies and self-insured plan sponsors.  The fees are to be used to fund the Patient-Centered Outcomes Research (PCOR) Trust Fund.  The excise tax must be paid for plan years that end after October 1, 2012, but the proposed regulations contain special rules for plan years currently in existence. The proposed regulations can be found here https://s3.amazonaws.com/public-inspection.federalregister.gov/2012-09173.pdf and will be published in the April 17th edition of the Federal Register.

Transgender Medical Expenses

in Health Benefits, Tax Issues

Many employer health plans have started paying for hormone therapy, sex reassignment and other gender identity expenses.  In prior years, the issue has been whether these services are medical expenses under Code Section 213, and thereby could be provided tax-free to participants.  In 2006, IRS Chief Counsel issued an opinion providing that these expenses were not medical expenses under Code Section 213.  However, in 2010, a Tax Court decision provided that in the facts of that case, the services were medical expenses under Code Section 213.  Last week, the IRS issued Action on Decision 2011-03, effectively ending this almost decade-long back… Continue Reading