Factbox: Obama delays health law employer fees, other taxes on track

WASHINGTON Wed Jul 3, 2013 4:07pm EDT

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WASHINGTON (Reuters) - The Obama administration has given employers an extra year to provide health insurance for their workers, delaying until 2015 a provision of President Barack Obama's healthcare reform law requiring businesses with 50 or more workers to decide whether to cover workers or pay a fine.

The "employer mandate" subjects companies to a $2,000 fine for each full-time employee lacking coverage, with the first 30 employees excluded from the fee.

The delay does not impact other taxes and fees that help fund the law, intended to extend coverage to tens of millions of Americans who do not have it.

The 2010 healthcare overhaul law, which has come to be known as Obamacare, contains more than 40 tax code changes.

New taxes for the wealthy and on medical devices are already being collected. Other tax rules are being finalized by the Internal Revenue Service. Here is a look at the major provisions.

BEGINNING IN 2014

* Individual mandate penalty fee. Starting in 2014, most Americans must have health insurance, or pay a fee to the IRS. The fee will be $95, or 1 percent of taxable household income, in 2014; rising in phases by 2016 to $695 per person, with a cap of 2.5 percent of household income.

* Health insurance premium tax credit. Starting in 2014, low- and middle-income individuals can claim a tax credit, based on percentage of income, to help them afford obtaining insurance in state-run insurance marketplaces.

* Fees on health insurance companies. The government will collect revenue from health plans, beginning by raising $8 billion in 2014 and ramping up to raise $14.3 billion in 2018. Subsequent years' fees will be based on the rate of premium growth.

IN EFFECT

* Additional Medicare Tax for wealthy. A 0.9-percent added tax on wages is in place for individuals with incomes exceeding $200,000, or married couples earning more than $250,000.

* Net Investment Income Tax. A new tax on investment income, such as capital gains and dividends, of 3.8 percent is in place, also for upper-income taxpayers only.

* Small business tax credits. For businesses with fewer than 25 workers and average annual wages of less than $50,000 per person, a tax credit is available to offset the costs of providing healthcare coverage to employees. Set at up to 35 percent of employer contribution for small employers and 25 percent for tax-exempt employers, the credit will rise by 2014 to up to 50 percent.

* Drugmaker fees. An annual fee on drugmakers based on sales and market share.

* Medical device excise tax. An excise tax of 2.3 percent on sales of medical devices is levied on manufacturers, which are responsible for reporting and paying the tax.

* Tanning salon tax. A 10 percent excise tax on consumer payments to indoor tanning salons, it is collected by the salons at the time of service and passed on to the government.

Sources: Congressional Budget Office, Internal Revenue Service, Kaiser Family Foundation.

(Reporting by Kim Dixon; Editing by Chris Reese)

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