October 2015 Newsletter
Quick Links
Like us on Facebook       Follow us on Twitter

November Luncheon Seminar
Save the date!

Affordable Care Act...
Compliance and Reporting for Small and Large Employers for 2015 and Beyond

Date: Nov. 12, 2015
Location: Crossroads Bible Church
Date: TBD
   As a not-for-profit, the California Cham-
ber of Commerce (CalChamber) is a business advocate and HR compliance resource for California employers.
   Our legislative presence means we know California employment laws inside and out. We monitor, analyze and report changes as they happen.

For more information click HERE .
FREE and discounted 
Christian Ebooks!

"David C Cook is a publisher of Christian books of various genres.  Click HERE for special offers!*
*Offers from David C Cook not necessarily endorsed by CMA.
From the President
   The impact of Obama Care (ACA) related programs and reporting requirements continues to be of significant interest to individuals and employers.
   For the third year in a row, major insurance carriers across the U.S. are projected by industry experts to raise their annual premiums by an average that could exceed 25%.
   Additionally, we are beginning to see carriers making the decision to stop writing coverage in some states where they have been experiencing significant losses.
   For many church and religious organizations there is a growing concern that they will no longer be able to afford to offer health care insurance to their employees.
   Should this occur, a large number of people will find themselves having to go out and purchase individual plans for themselves and their families or risk having to pay penalties for non-coverage.
   Some people will find themselves able to take advantage of the health care premium tax credit (lead article this month). But for many others who may soon find themselves in the position of having to purchase individual insurance, they will have to bear the full cost themselves (remember employers are no longer allowed to reimburse employees for the cost of individual plans - see  Employer Health Reimbursement Plans...the IRS Clarifies Their Position).
   To help gain a better perspective on where things are going and what reporting and compliance issues employers will soon be faced with in 2016, we will be holding special seminars in San Jose, California and Reno, Nevada, in November to bring you up to date with the latest information. 

Steve Boersma
How Your Income Affects Your
Individual Health Insurance
Premium Tax Credit
Individuals are allowed a premium "tax credit" only for health insurance coverage purchased through the Marketplace for yourself and/or other members of your family. However, to be eligible for the credit, your household income must be no more than 400 percent of the federal poverty line for a family of your size. An individual who meets these income requirements must also meet other eligibility criteria.
The amount of the premium tax credit is based on a sliding scale, with greater credit amounts available to those with lower incomes. (read more)
IRS Requires Speedier 
Applicants for 
Non-Profit Status
   Last month the Internal Revenue Service issued an internal memorandum for Exempt Organization Determination Employees which effectively changed IRS policy to give organizations applying for tax exempt status less time to submit additional information requested by the IRS for applications under review. Under the new procedures if an organization does not provide the information by the due date (28 days from date Notice is mailed to the applicant), the case will be closed and fees will not be refunded. A manager-approved extension of up to 14 days can be granted. Previously, an applicant could get a standard 14-day extension and then its file was held for an additional 90 days before it was closed.
   This is an important change . ( read more )
Sales Tax - Could your Organization's Activities Trigger a Sales or Use Tax Obligation to California?
   Complexity of sales (and use) tax applicability and exemptions with respect to nonprofits is often the cause of noncompliance. There are two points that are critically important for nonprofits operating in California to understand.
   First, being recognized as tax-exempt from income tax by the State does not also confer an exemption from sales tax. Second, eligibility for a sales tax exemption is activity-specific.
The General Rules:
   California taxes all sales of tangible personal property unless covered by an exemption. Similarly, the use tax applies to taxable merchandise...  ( read more )
Employment Law
ECFA and Other Groups Take a Stand for
Religious Freedom in Hiring
On September 10th, a wide range of religious leaders wrote to President Obama, asking him to maintain his administration's commitment to the Religious Freedom Restoration Act (RFRA) as a protection for faith-based organizations that partner with the federal government. This was in response to a group of progressive civil rights, religious, and LGBT organizations who, several week previously, had requested the President withdraw a Department of Justice legal ruling that confirmed that use of RFRA. To learn more on this development and to stay current on issues such as this, we recommend you visit the website of the Institutional Religious Freedom Alliance ( http://www.irfalliance.org/ ).