Massachusetts Health Care Reform became law on April 12, 2006. It is Massachusetts' plan to reduce the number of people who have no health insurance.  It also works to improve the cost and quality of health care. The following is an FAQ for employers:

1. What are the new requirements for employers?

Fair Share Contribution

Employers with 11 or more full-time equivalent employees that do not make a "fair and reasonable" premium contribution for their employees' health insurance will be subject to pay a Fair Share Contribution.  The Fair Share Contribution will be no more than $295 per employee per year.  This amount is pro-rated for part-time employees.  Liability for the Fair Share Contribution is based on data from October 1, 2006 to September 30, 2007. 

Section 125 Plan/Free Rider Surcharge

Employers with more than 10 employees must adopt and maintain a Section 125 plan that meets the regulations of the Connector.  A Section 125 plan allows employees to pay for heath insurance coverage on a pre-tax basis, and is not subject to state and federal taxes or federal FICA withholding taxes.  A Section 125 plan can benefit both the employer and the employee since they both will have lower payroll-related taxes.  The requirement goes into effect on July 1, 2007. 

Employers with more than 10 employees that do not offer a Section 125 plan that meets the regulations of the Connector to all employees and that have employees or dependents who receive "state-funded health services" may be subject to the Free Rider Surcharge.  Here, "state-funded health services" refers to health services that are paid for by the state through the Uncompensated Care Trust Fund (also known as the "free care pool") or the Health Safety Net Trust Fund.  The amount of the Free Rider Surcharge will vary based upon the number of employees, the utilization of the "free care pool" or the Health Care Safety Net, total state funded costs, and the percentage of employees enrolled in the employer's health plan. The Free Rider Surcharge goes into effect on July 1, 2007. 

Health Insurance Responsibility Disclosure (HIRD)

Employers with more than ten employees are required to complete an Employer Health Insurance Responsibility Disclosure (HIRD) Form.  On this form, employers will report information such as:  does the employer offer its employees a Section 125 plan that meets the regulations of the Commonwealth Connector?  The Division of Health Care Finance & Policy (DHCFP) will issue regulations about the HIRD form, to be effective on July 1, 2007.

We all have our favorite websites for certain things we do.  Some "Google" when they search, others go to ask.com or any of the other search engines that exist on the web. I have an odd obsession with weather.com.  If someone wants to talk about the weather, I do know that I'll be ready.

1. http://rs6.net/tn.jsp?t=njtoedcab.0.jhodrdcab.sipjyxbab.752&ts=S0266&p=http%3A%2F%2Fwww.small-business-dictionary.org%2F: If you are like me, you come across a business term that you are not sure you know the meaning of. This site is a simple dictionary of those terms where you can get a quick, albeit unofficial definition. Take a peek on the site and I'll bet you'll find some terms defined that you have always wondered about.
2. http://rs6.net/tn.jsp?t=njtoedcab.0.khodrdcab.sipjyxbab.752&ts=S0266&p=http%3A%2F%2Fwww.investopedia.com%2F: This is the investment world version of a dictionary. Literally hundreds of financial/investment terms are defined. I found the section on acronyms particularly helpful.
3. http://rs6.net/tn.jsp?t=njtoedcab.0.lhodrdcab.sipjyxbab.752&ts=S0266&p=http%3A%2F%2Fwww.bankrate.com%2F: This is a nice site if you want to compare bank products like mortgage and home equity loans, checking accounts, savings and CD rates, etc. I also like the handy calculators section. You can print out an amortization schedule, do some simple 401k planning and a number of other analyses you might find helpful. Of course, you can always contact us here at Rodman & Rodman for any assistance with this sort of thing.
4. http://rs6.net/tn.jsp?t=njtoedcab.0.mhodrdcab.sipjyxbab.752&ts=S0266&p=http%3A%2F%2Fwww.staysafeonline.org%2F: This site includes a self assessment quiz to determine whether you are doing what you should to protect your computer from unwanted attacks. Information on this site covers both small businesses and family use, offering up some sensible solutions to help prevent some of the bad things that can and sadly do occur. Though this site can be helpful Rodman & Rodman recommends you have a qualified professional assist you with computer security. If you need to be referred to a professional, please give us a call and we'll connect you.
5. http://rs6.net/tn.jsp?t=njtoedcab.0.nhodrdcab.sipjyxbab.752&ts=S0266&p=http%3A%2F%2Fwww.uspto.gov%2F: This is the home page for the United States Patent & Trademark Office. If you have questions about copyrights, trademarks and patents, this site provides you with excellent information about the law with "how to" guides that layout the process for each. You should again consult a professional if you get serious about applying for your own patent, but having a good understanding of the basics beforehand can only make the process smoother and perhaps even less costly.

Feel free to send me any websites that you think would be helpful to our readers. Drop me a line at larry@rodmancpa.com.

• Keep the cash flowing: Many of my clients do their QuickBooks bookkeeping once a week or have someone coming in once a week or at some fixed interval of time. Do not let this hold up your deposits into the bank by waiting until you have recorded the customers' payments to actually make a deposit. Make copies of your customers' checks and of the deposit slip. Then file those in a three ring binder and head right down to your bank to make that deposit! The copies should be adequate for when the time comes to record the activity. It is never a bad idea, whether you have QuickBooks or not, to follow this practice. It gives you an excellent audit trail of customer payment activity and may come in handy when you have a dispute with a customer over their balance.
• Check that spelling: Spelling errors can be embarrassing in business. Of course they happen, but if you send out a document with more than one, it gives an impression of your business that I think you'd rather not have. On the Edit menu, check your Preferences and be sure that you have checked the box that  has QuickBooks always check for spelling errors before printing forms. The great thing about QuickBooks, is that it allows even the smallest of businesses look professional. Don't let that be compromised by easily preventable spelling errors.
• Make estimating easier: In some businesses it is necessary to generate estimates. QuickBooks can do this for you. Most who do estimates know that. What some don't know is that you don't have to do each estimate from scratch. If your estimates are similar, or different types of estimates fall into certain categories, and within those categories the estimates are similar, here is a shortcut: Keep a list of estimates you have done that are typical for your business. When a new estimate is needed, open the existing estimate that closely resembles it. Right click anywhere in the estimate field and select Duplicate Estimate. A new estimate (with a new estimate #) is created. Make the changes you need to make and you're good to go.
• I know you're backing up QuickBooks BUT... Where are you putting that backup? Far too often I am finding that the back up is kept on a CD in the drawer near the computer. That is fine if something goes wrong with the computer, but you haven't done anything to protect yourself in case of fire, flood, theft or other similar events. Please find a separate physical location for your backups. That can be a relative's home, your spouse's office, anywhere but the same place where your computer is. There are also a number of online solutions that permit you to store these files on the web for a relatively small cost. The cost to re-create QuickBooks files permanently lost can be prohibitive. Do not make the mistake that can cost you your business. Commit to a schedule of backups, keep those backups somewhere else and consider those backups as critical as anything you do, because they are!

See you next time with some more QuickBooks tips!