...HOBBY LOBBY VS. THE AFFORDABLE CARE ACT Leonila Gonzalez oUR LADY OF THE LAKE UNIVERSITY HOBBY LOBBY VS. THE AFFORDABLE CARE ACT Leonila Gonzalez oUR LADY OF THE LAKE UNIVERSITY Businesses can be affected by many laws and mandates that are set by the state or federal government. It can be difficult for a small firm to stay in business when such mandates are passed. The Affordable Care Act was signed into law by President Obama on Mach 23, 2010. Key components to the law are improving quality and health care costs, new consumer protections and access to healthcare, and mandating that all firms provided insurance for their employees. Small Business Tax credits were also included as an incentive and a way to reduce cost for the smaller firms. (Human Health Services, 2014) In order for a firm to be exempt from providing insurance to its employees they had to be classified as a non-profit organization or a Church. A businesses classification will give them exemptions for example a non-profit organization. A non-profit organization can be defined as “an incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially” (Investor Words, 2014). Because of the mandates of the Affordable Care Act, it is now in the center of litigation in which a for-profit organization is asking for exemptions from providing women health care, contraceptives, due to the owner’s religious belief. (Reese...
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...the boundaries that protect religious affiliations before infringing upon their constitutional rights. Recently, an important legal case called Burwell vs. Hobby Lobby was brought to the attention of the Supreme Court. Hobby Lobby is a family-owned Christian arts and crafts store who felt that the requiring of religious businesses to provide insurance coverage for contraception under the Affordable Care Act violated their rights under the Religious Freedom Restoration...
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...balance sheet at the time your received it two years ago. It would not have been reported as a deductible expense following the matching principle. In the current year when the $25,000 is reimbursed, the revenue minus the expense equal to zero. However, if you expensed it in the year it was paid, the $25,000 would be reported as income on this year’s income tax. c. Determination regarding reducing the taxable amount of income for both (a) and (b) above? You can make use of an LLC reporting as an S Corporation where wages that are paid to the shareholder may be less than the $300,000. The regular income tax rates will apply regardless, but this legal ploy can save some social security taxes which amount to an additional 15.3% (S-Corporations vs. LLC: Income Tax Savings Benefits, 2012). You can reduce the taxable amount of income by fully funding a variety of retirement plans, such as IRAs, SEP-IRAs, profit sharing. Take advantage of Section 179 (IRS, 2012), you can pay as many current expenses as possible....
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...John Smith worked on a case for more than two years and received a lump sum payment of $300,000 for his work plus an additional $25,000 for pre-paid expenses. He wants to know how this money will be treated for tax purposes. John’s company is what is known as an LLC or Limited Liability Company, and for U.S. federal income tax purposes, an LLC is treated by default as a pass-through entity. Since John is the only person in the company, the LLC is treated as a “disregarded entity” for tax purposes, and an individual owner would report the LLC’s income or loss on Schedule C of his individual tax return. According to the IRS, Taxable earned income includes: • Wages, salaries, tips, and other taxable employee pay • Union strike benefits • Long-term disability benefits received prior to minimum retirement age • Net earnings from self-employment • Gross income received as a statutory employee (What is Earned Income?, 2012) According to the IRS description above, John earned a total of $325,000 from the case that would be considered taxable income. The $25,000 is included as income for the expenses that John has incurred over the past two years. However, John will only be able to deduct expenses that occurred during the current year and any prior year expenses should have been deducted in the tax year that they were incurred. If this was not completed, he should amend any previous year’s return to reflect the deductions. This money is reported as income and should be reported...
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...religious belief? This was the main argument in the supreme court case of Burwell vs. Hobby Lobby. This case rocked the supreme court and our nation as many were very opinionated one way or the other. The complete dynamics of healthcare and religion in business was changed and defined by this case. When Obama passed the American Affordable Care Act businesses had to help pay for their employees’ healthcare, part of this healthcare included contraceptives. Hobby Lobby did not agree with four out of the twenty contraceptives offered. They...
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...BURWELL v. HOBBY LOBBY STORES, INC., 134 S. Ct. 2751, 2782 (2014). UNITED STATES SUPREME COURT Facts: Hobby Lobby, Inc. is owned and operated by the Green family, who run their business based on principles of the Christian Faith. One of the many values of the Christian Faith is that the use of contraceptives is immoral and should not be legal. However, the Patient Protection and Affordable Care Act established that a list of predetermined conditions will be made more affordable and the quality of related healthcare shall increase regardless of race, sex, or monetary status. Items on the list of predetermined conditions included contraception methods, which went against Hobby Lobby’s core values. Hobby Lobby claimed that they should not be required,...
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...1. John Smith tax issues: a. How is the $300,000 treated for purposes of Federal tax income? The $300,000 is taxable income; the reason is that the IRS always collects taxes when we receive a lump sum payment as compensation for negligence, injury or other wrongdoing. Litigants are allowed to bring up a taxation lawsuit in the case of lump sum payments. Mr. Smith, you will have to take all of the necessary steps to make sure that the amount is paid to the government on time so that no fines or penalties are charged due to late payment. If you fail to make the payment of taxes to the IRS for any lump sum payment, such as this one, the law says that you would not only have to pay the taxes back to the IRS, but you would also have to assume the late payment penalty to the government. After all the information given, I would suggest that if you have been given the option to choose, you should choose annuity payments since this case is concerning large settlements, in order to avoid any lawsuit taxation. b. How is the $25,000 treated for purposes of Federal tax income? In the case of the $25,000, they are not taxable; they should be treated as expenses, meaning that they can be deducted as expenses for that year. c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? As previously mentioned in answer number 1, Mr. John Smith should choose the annuity payments options, in order to reduce the chances of lawsuit taxation...
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...and contraceptives should not be covered by employers and insurance companies simply because they are greatly misinformed on the subject. Due to the many beneficial effects that they offer their users, all forms of contraceptives should be covered by all employers and insurance companies. One of the most recent issues involving employers denying their female employees the coverage of contraceptives is the case of Burwell vs. Hobby Lobby. The Affordable Care Act requires that employer health plans include coverage for preventive services and the federal government has issued regulations defining contraceptive care as one of the services that must be covered. The plaintiffs in these consolidated cases are two for-profit business corporations that sought, and were awarded, an exemption from that general rule under the Religious Freedom Restoration Act ("Burwell v. Hobby Lobby Stores & Conestoga Wood Specialties Corp. v. Burwell") . However, this decision made by the Supreme Court is completely ludicrous and unlawful. The five male justices who sided with Hobby Lobby essentially said that a boss’s opinion about birth control overrides a woman’s personal choices, and women are incapable of...
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...in the tax year when the bill was created and sent to the client. As of right now, it looks like the $300,000 will be counted as income for this subject tax year. Next, let’s look at your expenses. Two: $25,000 as income? As we just discussed, the timing of expenses will vary depending on cash based versus accrual based accounting method. Since we are going to assume and verify that you are cash based, the $25,000 in expenses paid up front will not reduce your income in this subject year and the $25,000 received will be counted as income on this tax year. If in fact you did not deduct the expense in the past, then the $25,000 will not be taxable since it is a reimbursement. Three: Buy vs. Rent office space. Interest on a loan and depreciation are deductible as a business expense but so is your rent. Based on $300,000 income and not electing to be taxed as a corporation, you will be at the 33% tax bracket (Married...
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...Business Economics Slide 1 The Intention of every business-to make money Slide 2 *Basics to becoming wealthy and remaining wealthy 1. Spend wisely 2. Create multiple sources of income (several ways to make money) 3. Invest you money to make more money 4. Pay as little taxes as possible that is legal Spend Wisely- Credit cards are a great way to keep track of expenses and keep all expenses in one place. But, you must pay them off every month or they are bad. Multiple sources of income- gives greater chance of keeping money. When money is put in different areas like a business, real estate, stock market, etc., you have a better chance of keeping your money because if one thing goes bad, you still have the other investments. *Investing-RULE of 72 Divide the % of your return by 72 = years to double money So, if you have a 15% return, then: 72/15 = 4.8 years to double this You can have $100,000 and invest it wisely and end up with $300,000 in 20 years. But of the $300,000, taxes can cost alot, so you should put your money in business. Business does not have as many taxes to be paid cause there are alot of deductions. For example: When an individual buys copy paper that cost $10, you also pay tax so it cost $12. But when a business buys it, the business can write it off for a business expense and no extra tax is paid. Must learn ways to create a passive income (Income that does not stop but continues til your death). Innovations pay...
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...|---------------------- | |Date: |May , 2013 | |Re: |YOU DECIDE, WEEK 4 | John Smith Tax Concern 1(a): The issue is the $300,000 in income for John’s fees. How to treat this in Federal Income Tax? In reading Cornell University Law School (as much of this memo comes from) referencing the IRS code, Section 61(a), the code the concept of income is broad and general. Gross income means all income from whatever source derived, including (but not limited to) the following items: (1) Compensation for services, including fees, commissions, fringe benefits, and similar items; (2) Gross income derived from business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments; (9) Annuities; (10) Income from life insurance and endowment contracts; (11) Pensions; (12) Income from discharge of indebtedness; (13) Distributive share of partnership gross income; (14) Income in respect of a decedent; and (15) Income from an interest in an estate or trust. (I.R.C § 61) My investigation of this leads me to conclude that Section 61(a) basically says that the gross income is not limited to these items, but that these are just the most typical sources of income. It is irrelevant whether or not the above items are received in money, goods, or services. ...
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...-Self-Motivation -Independent workers -Leader qualities -Time Management -Respect -Team Working -Dependability -Written numerical & verbal skills -Punctuality -Planning -Problem-Solving -Organisational skills -Determination Self-Motivation Self-Motivation is the ability to complete what needs to be done. When you are set a task you complete it to the best of your ability, you push yourself to bypass challenges and also will not give up easily. Leader Qualities Proactive vs. Reactive-The exceptional leader is always thinking three steps ahead. Working to master his/her own environment with the goal of avoiding problems before they arise. Flexible/Adaptable-How do you handle yourself in unexpected or uncomfortable situations? An effective leader will adapt to new surroundings and situations, doing his/her best to adjust. A Good Communicator-As a leader, one must listen...a lot! You must be willing to work to understand the needs and desires of others. A good leader asks many questions, considers all options, and leads in the right direction. Respectful-Treating others with respect will ultimately earn respect. Quiet Confidence-Be sure of yourself with humble intentions. Enthusiastic-Excitement is contagious. When a leader is motivated and excited about the cause people will be more inclined to follow. Open-Minded-Work to consider all options when making decisions. A strong leader will evaluate the input from all interested parties and work for the...
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...TO DO: 1. Begin drafting formal business plan document 2. Primary research through a user survey on google forms 1. explain who we polled, why we did it, and what we found 1. Who is our customer (in and out) 1. age, salary, hobbies, skills, activities, schedule, location, goals, etc 1. What are our customer acquisition costs? 1. time 2. $1000 for like Bruin Plaza, flyers, trainers (for the Bruin plaza day), free snacks, apparel 1. App mock-up 2. Who are partners vs. customers (do we have both?) Updates to presentation: * More photos - high quality (get a shutterstock subscription?) * Facebook, linkedIn, googleplus accounts * Make numbers stand out * Get a logo * Beginning of presentation * Start with photo and no logo and begin to tell story * Then show a number slide that explains a problem that our market faces * Show SpotMe slide - the solution to the above problem and explain what it is * Add citations like 30001 * 1 what does the number 3000 mean, what is the source * put actual website source in appendix * Remove numbers about how much money was invested in health apps * Instead quantify the benefits of using an app like SpotMe i.e. the health benefits and compare that to how much it costs $5 * divvy up bullet points/numbers to different slides * currently there is too much text on the slides * MAKE THE BULLET POINTS MEAN SOMETHING →...
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...Educational Technology and Emerging Media Professor Jacqueline Cahill March 30, 2014 Table of Contents Social Media: An Educational Tool……………………………………………………………3 The Good vs. The Bad…………………………………………………………………….…3-5 Privacy and Security…………………………………………………………….……………5-6 Conclusion……………………………………………………………………………………….6 Social Media: An Educational Tool Nowadays social media has become an increasingly popular hobby for many students; therefore, teachers will most likely benefit from implementing it into their e-learning curriculum. There are several ways that social media can be applied in e-learning. The social media site Facebook can be used for students to share and post ideas and information, which can promote learning. Twitter can help students connect with each other while rallying around a topic or idea (Krutka & Milton, 2013). YouTube, my personal favorite, has so much free information that teachers can use it to support the lesson, and even podcasts are essential because they allow the students to connect to audio content over the web. So many wonderful lessons can be taught and developed using social media and though it may not be ideal or accepted by everyone, you cannot deny the positive effects social media can have on learning if implemented correctly (Faizi & El Afia, 2013). The Good vs. The Bad There are many good qualities that social media bring to the classroom learning experience. Oftentimes students are engaged in their own worlds but social media can...
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...John Smith Tax issue 1(a) Issue: The issue is the $300,000 in income for John’s fees. How to treat this in Income Tax? Rule of Law: Section 61(a) of the Code the concept of income is broad and general. Gross income means all income from whatever source derived, including (but not limited to) the following items: (1) Compensation for services, including fees, commissions, fringe benefits, and similar items; (2) Gross income derived from business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments; (9) Annuities; (10) Income from life insurance and endowment contracts; (11) Pensions; (12) Income from discharge of indebtedness; (13) Distributive share of partnership gross income; (14) Income in respect of a decedent; and (15) Income from an interest in an estate or trust. I.R.C § 61 Analysis: Section 61(a) it basically says that the gross income is not limited to these items, but that these are just the most typical sources of income. It is irrelevant whether or not the above items are received in money, goods, or services. Conclusion: The $300,000 that John received for services rendered from the court case is considered earned income for the year. The $300,000 is earned income for John Smith and will be reported as gross income either on Schedule C of the individual return or as gross income on the LLC return. ...
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