Test Your Obamacare Exchange Knowledge

EMPLOYEE WITH 2 CHILDREN EMPLOYEE, SPOUSE, 3 CHILDREN QUESTION 1 Q. Circle the dollar amount of cost for an Obamacare Silver Plan ($6,400 per person risk) for each coverage category. SINGLE EMPLOYEE AND SPOUSE EMPLOYEE WITH 2 CHILDREN EMPLOYEE, SPOUSE, 3 CHILDREN $99 $400 $0 $3,018 $3,270 $2,548 $1,438 $3,426 $5,700 $4,087 $3,857 $7,714 $7,690 $7,279 $5,390 $8,191 $9,223 $16,530 $10,781 $12,024 $22,132 A: All are correct. Obamacare costs depend on age, income and number of dependents.

QUESTION 2 Q: An employee is in the 28% marginal Federal Income Tax bracket and pays 12% for FICA, State and City Tax (Total 40% taxes). What is the net (after tax) cost of his $5,000 Obamacare Exchange cost? A: $2,000 $3,000 $5,000 – Exchange costs are after-tax, not pre-tax None of the above

Question 3 Q: An employee is in the 28% marginal Federal Income Tax bracket and pays an additional 12% for FICA, State and City Tax (Total 40% taxes). How much would the employee need to earn to pay the Obamacare Exchange costs of $5,000? A: $2,000 $5,000 $8,333 – Less $3,333 (40% taxes) = $5,000 None of the above

QUESTION 4 Q: An employee is in the 28% marginal Federal Income Tax bracket and pays 12% for FICA, State and City Tax (Total 40% taxes). Employer related payroll expenses are 15% for FICA, Workman's Comp and 401K. The employee currently pays $2,000 for health insurance at his employer. What is the employer's cost to assure the employee "breaks even" (gets a raise) if Obamacare costs $5,000? A: $3,000 $5,000 $5,750 - The gross up is $5,000 to net $3,000 plus $750 employer payroll expense. None of the above

QUESTION 5 Q: The ABC Company is in a 25% marginal income tax bracket. Which expense below is the least costly considering this. The annual insurance premium of $4,000 to cover a single employee. A $3,000 annual penalty under Obamacare A: They are equal. Premiums are deductible, penalties are not. Company must earn $4,000 to net $3,000

QUESTION 6 Q: Mary has two job offers. Both pay $36,000 per year. She will need healthcare coverage for herself and three children. Which job is she likely to choose? Job A: Her healthcare costs 30% of premium ($450 per month). Job B: Her healthcare cost is $40 per month. A: Likely Job B which allows use of Federal Exchange Subsidies.

QUESTION 7 Q: Circle the statements that are true. Employee turnover will increase if an employer uses Obamacare for health coverage. Employee turnover will increase if an employer does not use Obamacare for health coverage. A: Both are true. Mary in Q6 might quit if she is denied Obamacare Subsidies and your Super Stars might quit if their costs are driven up.