Pub. 3 2013-2014 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S September • October 2013 11 Core Bank Processing • Managed Services • Mobile & Internet Solutions Payments Processing • Electronic & Print Distribution • Regulatory Compliance 800.545.4274 csiweb.com Are your communications scrambled or coming through loud and clear? Open new lines of communication for BOARDS / EMPLOYEES / LOAN COMMITTEES Enhance communication with CSI Secure Connect. When it comes to productivity, you have to cut through the noise of everyday distraction. CSI Secure Connect gives you access to a centralized portal solution that streamlines communication for employees, board members, loan committees and other designated groups. Through uncompromising technology and unmatched customer service, we’re enhancing the quality of your communication channels. csiweb.com/TheAnswer credit or cost-sharing reduction. The annual penalty is equal to $2,000 per full-time employee, assessed monthly ($166.67 per month), less a 30-employee exclusion. Reporting Requirement Provision Applicable large employers providing minimum essential coverage to individuals during a calendar year must report health insurance coverage information to the IRS and provide a written statement to covered individuals. Per Notice 2013-45, these reporting requirements now apply to coverage provided on or after January 1, 2015, and the first informational returns will be filed in 2016. While the IRS has indicated employers and other affected entities are encouraged to voluntarily comply for 2014 (once the information reporting rules have been issued), penalties for noncompliance will not apply until 2015. What Is Still Required? The one-year delay for the information reporting and play or pay provisions has no effect on the effective date of applica - tion of other ACA provisions. Some of the key ACA provisions requiring immediate attention include, but are not limited to: • Additional W-2 Reporting Requirements In general, employers who filed 250 or more FormW-2s for 2011, filed in January 2012, are required to disclose the value of employer-provided health insurance coverage as an informa- tional item on each employee’s W-2. Transition relief remains in effect for employers that filed fewer than 250 W-2s until the IRS publishes additional guidance. Implications & Potential Penalty: Employers should con- sider what is required to be reported and adjust payroll systems to accurately track this information. A penalty ranging from$30 to $100 per FormW-2 may be imposed for failure to file correct information returns. The IRS website has more information on this issue. • Additional Medicare Tax on Earned Income Beginning in 2013, an additional 0.9 percent medical hospi - tal insurance tax is due on wages and self-employment income in excess of certain limits for individuals. Employers will be required to withhold the additional percentage on individuals with compensation in excess of $200,000. Self-employed indi - viduals will need to pay the tax through estimated payments. Implications & Potential Penalty: Employers are liable for any additional Medicare tax they fail to withhold unless the employee pays the tax. Employers also will be responsible for  Play or Pay  continued on page 12