Affordable Care Act /Penalties/ SB 1098

The penalties for individuals under the ACA are somewhat misunderstood. The number for an individual is a minimum of $95. This increases to $325 in 2015,$695 in 2016 and $695 indexed for inflation thereafter.

There is an additional penalty for spouses and dependents up to a maximum of three times the individual penalty



This is increased to 1% if an individual makes over $19500 [ according to the IRS subtracts the first $10000 so the 1% does not apply] This is first year.





For couples with no dependents it is 1% of excess income defined as that over $20000. This means they would have to make over $28000 for the 1% to apply. The rate goes up to 2% in 2015 and 2.5% 2016. This is first year



For couples with one dependent it is 1% of excess income defined as $23900. This means that the household income would have to exceed $$37500 for the 1% to apply. The rate goes up to 2% in 2015 and 2.5% in 2016. This is first year



For couples with 2 dependents it is 1% of excess income defined as26800. This means that the couple and two dependents would have to make $$46000.

The rate goes up to 2% in 2015 and 2.5% 2016. This is first year



There are additional rules around this but I am trying to keep it simple.





Senator Harkey has introduced SB 1049 which would require the Board of Equalization to pay the same interest rate on over payments as they charge on underpayments. This was the law until 1991. Seems like common sense legislation and Small Business California will be supporting.





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188