2013 Spring (PDF) - Wisconsin Underground Contractors Association

Federal Affordable Health Care Mandate
January 1, 2014
The new employer mandate takes effect on January 1, 2014 and companies are deciding what kind of
health insurance, if any, to offer employees. Some employers will drop employee health care coverage
and pay the required federal penalty. A business that fails to offer insurance to workers can avoid paying
any penalties if it has fewer than 50 full-time employees. Some employers are replacing full-time
employees with part-timers. State health fund exchanges are expected to open for enrollment on
October 1, 2013. Employers should seek advice from their financial advisors on how best to handle
this topic.
For 2013, New Tax Increases
• A payroll tax increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent
for workers. This tax increase impacts all Americans.
• The top marginal tax rate increase from 35 percent to 39.6 percent for taxable incomes over $450,000
($400,000 for single filers).
• A phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for
single filers).
• Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
• Tax rates on investment increase in the rate on dividends and capital gains from 15 percent to 20
percent for taxable incomes over $450,000 ($400,000 for single filers).
• Death tax increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
• Taxes on business investment expiration of full expensing—the immediate deduction of capital
purchases by businesses.
• A 3.8% surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000
for singles).
• Another payroll tax hike 0.9 percent increase in the hospital Insurance portion of the payroll tax for
incomes over $250,000 ($200,000 for single filers).
• Reduction of the income tax deduction for individuals’ medical expenses.
• Elimination of the corporate income tax deduction for expenses related to the Medicare Part D
subsidy.
(Source: The Foundry January 8, 2013)
Returning Heroes Tax Credit
The Returning Heroes Tax Credit provides up to $5,600 in credits for each unemployed veteran you
hire. The Wounded Warriors Tax Credit provides up to $9,600 to companies who hire veterans with
service connected disabilities. There are tax benefits for hiring a military veteran. (Source: WMC
January 2013)
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