Thursday, November 14, 2013

What Does Obamacare Really Look Like for Michigan Nannies?



Michigan Professional Nanny Association would like to thank Traci McGowan for her work in producing this article for us.  For Michigan nannies who have further questions regarding their tax status or the Affordable Care Act, Traci is happy to answer questions.  She is also happy to help with resolving tax issues (for a fair fee).  We look forward to Traci's ongoing help and to having her as a featured workshop presenter at National Nanny Training Day 2014.  Thank you, Traci!! 

What Does Obamacare Really Look Like?
By Traci McGowan

I would be completely lying if I said I understood all the babble the media has been presenting about Obamacare. They’re just…arguing. While the big eared politicians fight with each other, I thought I’d share what Obamacare could look like for those of you who belong to the Michigan Professional Nanny Association.

Obamacare is Law
The law does require practically everyone in the country buy and/or be covered by a health insurance policy no later than March 31, 2014.

Wait…Practically Everyone?
Yes. You may not be required to buy health insurance if you:

·        * Have financial hardships (you have to prove this).
·         *Have been uninsured for less than three months (this could change).
·         *Have religious objections (This does not mean you can avoid the whole thing by saying “I’m religious!”).
·         *Are an American Indian (If you fall under this, you’ve most likely been contacted by your council).
·         *Are a prison inmate (Which would mean you would not be working as a Nanny).
·         *Are an undocumented immigrant (Self-explanatory).

What if I Don’t Qualify for an Exemption?
Here are a few suggestions:

*Mom and Dad
·         Under age 26? You could remain covered under your parent’s policy until you turn 26. Talk with your parents about what staying on their policy would look like financially. For those currently on their parents’ policies, it could mean no changes at all. For others it may not make sense financially.

*Nanny Family (Employer) Helps with Premium Costs
·         Household employers are not required by the healthcare law to provide insurance coverage for their household employees. However, healthcare.gov states that they could qualify for health care tax credits if they do provide health insurance or at least contribute towards your health insurance coverage.

·         The maximum credit possible for the 2014 tax year for a small employer is 50 percent of contributions made to qualified health care premiums/coverage.

·         The IRS still has yet to explain the fine details for claiming the credit. Regardless, for your employer to qualify for the tax credits, the following guidelines must be met:
o    You must be a full time employee (aka: FTE).
o    Your income must be reported. This means you receive a regular paycheck where taxes are withheld, and you receive a W2.
o    Your annual income must be less than $50,000.
o    Your employer must purchase health insurance through the Small Business Health Options Program (aka: SHOP).

What if I Receive Form 1099?
Your Nanny Family is not eligible for any credits and therefore cannot benefit from assisting you with healthcare coverage.

Healthcare Exchanges
Michigan does not have a State healthcare exchange, so everyone must use healthcare.gov. You are not able to shop for policies. You are required to offer up all your info.

Side note: you cannot go back and make any changes to your profile. Nor can you create a new profile. What you see is what you get.

Coverage Explained
·         Bronze – it’s called 60/40 – that means the insurance company will pick up 60% of the health care costs and you will have to pick up the remaining 40%. AFTER you meet the deductible. A deductible is what the policy holder has to pay out of their own pocket before the insurance company kicks in that 60%. This is how it looked for me:
o    Deductibles ranged anywhere from $4,000 to $6,300.
o    Monthly premiums ranged anywhere from $179 - $351 a month ($2,100 - $4,200 annually).
o    Annually (Premiums and Deductibles) potentially could cost me $7,300 - $10,200.

·         Gold – it’s called 80/20 – the insurance company picks up 80% of the health care costs and you pick up the remaining 20%. Again, AFTER the deductible is met. This was my breakdown (I only qualified for one Gold plan):
o    $250.00 deductible.
o    $379.00 monthly premium ($4,500 annually).
o    Annually (Premiums and Deductibles) could run $4,800.

·         Silver – it’s called 70/30 – the insurance company picks up 70% of the health care costs, you pick up the remaining 30%. AFTER the deductible is met. This again, my breakdown:
o    Deductibles ranged from $1,650 to $4,600 per year.
o    Monthly premiums ranged anywhere from $203 to $459 ($2,400 to $4,300).
o    Annually (Premiums and Deductibles) could run anywhere from $4,700 to $7,300.

·         Platinum – it’s called 90/10 – the insurance company picks up 90% of the health care costs and you pick up the remaining 10%. AFTER the deductible is met. Me again:
o    Deductibles ranged from $500-$1,000.
o    Monthly premiums ranged from $265 - $430.
o    Annually (Premiums and Deductibles) could run anywhere from $4,200 to $5,700.

What About Those Government Subsidies – Won’t Those Help with the Premium Payments?

·         The only plan eligible for subsidies and low-cost options are the Silver plans - that’s per Healthcare.gov. Bronze, Gold and Platinum plans are not eligible for any out of pocket savings regardless of how far down on the poverty calculator you are.

·         The “Subsidies” come to you in the form of a tax credit when you file your 2014 taxes in 2015. While the credit is a nice perk, it doesn’t provide any help on a month to month basis.

·         Persons who do not report income are not eligible for any subsidies. Please contact us for additional information on this particular item.


What If I Opt to Not Purchase Health Insurance
Persons who elect not to purchase health insurance by March 31st, 2014 will have to pay penalties:
·         $95.00 per adult. Married or have a partner? $190.00.
·         $47.50 per child. Say you have three children? $142.50.
·         Penalty would be $332.50.
OR
·         1% (one percent) of your gross income, whichever is greater.

Each year the penalty increases. This also does include any fees or interest the IRS may or may not charge.

If you have questions regarding Obamacare, feel free to get in touch me at traci@bythenumb3rs.com.


About Traci:

Traci McGowan is a writer, an accountant of 20 years, and Chief People Officer of By The Numb3rs, located in Royal Oak, Michigan. When not crunching numbers or reading up in the latest IRS updates over a bag of pretzels, Traci dreams of new AppleCrack toys. Traci is also involved with the creation of a new exercise/fitness area at the S.A.Y. clinic in Detroit, and is in the process of writing her first book.

Wednesday, April 24, 2013

If you give a nanny a naptime...

Inspired by our own experiences, the planners of National Nanny Training Day - Michigan Edition offer this children's book parody on behalf of Michigan Professional Nanny Association.

If you give a nanny a naptime…
By Kristin Grau, Candice Kovach, Tara Lindsay, and Jessie Richmond

If you give a nanny a naptime...

She’ll finally get to go to the bathroom in peace.

While she’s washing her hands, she’ll look in the mirror and realize she’s still wearing a tiara and a superman cape, and has six stickers on her face, which will remind her to clean the playroom.

While she is cleaning the playroom, she’ll find 3 dirty socks and a sippy cup of sour milk, so she’ll go to put those away and that’s when she’ll notice that the dishwasher needs to be emptied and the laundry needs to be done.

While she is doing laundry she’ll remember there are dirty clothes in the nursery, so she’ll tiptoe upstairs and as she opens the nursery door it will creak and wake the baby.

As she rocks the baby back to sleep she’ll notice her manicure is a mess, which will remind her that she missed her nail appointment two weeks ago because she agreed to stay and babysit.

As she puts the baby back in the crib she’ll notice her shoulder is covered with baby drool and she’ll remember about the laundry.

While she is doing the laundry, she’ll realize you are almost out detergent, so she’ll start to make a grocery list.

When she opens the fridge to see if you need milk, her tummy will start to rumble and she’ll remember that she never ate lunch.

She’ll make herself a sandwich, add bread to the shopping list, and sit down to eat. As soon as she sits down to eat lunch, she’ll hear the baby on the monitor so she’ll wrap up her sandwich and go to get the baby.

As she dashes back up the stairs, she’ll realize how tired she is and wish that she had a naptime too.

But if you give a nanny a naptime…well, we all know how that goes.