Dealing with New Health Care Law Provisions (00319975)

This two CPE hour course explores some of the tax provisions in the Affordable Care Act that impact individuals and businesses.
Final Exam > Results Page

final exam score:
90%

Question 1
Correct
The U.S. Supreme Court upheld the individual mandate (Code Sec. 5000A) in the Affordable Care Act by finding that it:

Mandates only large employers to remit employer shared responsibility payments

Mandates all employers to provide health coverage to employees

Mandates individuals in grandfathered health plans to replace them with health insurance from state health exchanges

(You Answered) (Correct Answer) Falls under the constitutional power of Congress to tax

Question 2
Correct
The Affordable Care Act’s shared responsibility payments for individuals are calculated on a _____ basis.

Daily

Weekly

(You Answered) (Correct Answer) Monthly

Annual

Question 3
Incorrect
The Affordable Care Act’s shared responsibility payments for employers are scheduled to be effective for months beginning after:

December 31, 2010

December 31, 2011

(You Answered) December 31, 2012

(Correct Answer) December 31, 2013

Question 4
Correct
For-profit employers with 10 or fewer full-time or full-time-equivalent employees (FTEs) paying average annual wages of not more than $25,000 may be eligible for a maximum Code Sec. 45R credit of ____ for tax years beginning in 2010 through 2013.

25 percent

(You Answered) (Correct Answer) 35 percent

50 percent

75 percent

Question 5
Correct
The Affordable Care Act’s employer shared responsibility payment generally applies to an employer that averages _____ or more full-time equivalent employees during the preceding calendar year, subject to certain limitations.

25

(You Answered) (Correct Answer) 50

100

150

Question 6
Correct
Free choice vouchers under the Affordable Care Act:

Are available to qualified individuals after December 31, 2013

(You Answered) (Correct Answer) Were repealed by the Department of Defense and Full-Year Continuing Appropriations Act of 2011

Will be included in a taxpayer’s Code Sec. 36B premium assistance tax credit calculation

Cannot be greater than $1,500 per recipient

Question 7
Correct
For tax years beginning after December 31, 2012, health flexible spending arrangements (health FSAs):

May not allow employees to use employer flex credits

(You Answered) (Correct Answer) Have a $2,500 annual limit for employee salary reductions

Exclude payments for medical care items that are not medicines or drugs

Allow payments for nonprescribed over-the-counter medicines

Question 8
Correct
A covered entity must pay the Affordable Care Act’s branded prescription drug fee when the entity’s calendar year sales of the drugs total at least:

(You Answered) (Correct Answer) $5 million

$10 million

$225 million

$400 million

Question 9
Correct
After December 31, 2012, the Affordable Care Act imposes an excise tax on the sale of certain medical devices in an amount equal to ___ percent of the sale price.

1.5

2.0

(You Answered) (Correct Answer) 2.3

3.3

Question 10
Correct
Health care coverage reporting to the IRS by plan sponsors and applicable employers under Code Secs. 6055 and 6056 applies to calendar years beginning on or after:

January 1, 2013

June 30, 2013

(You Answered) (Correct Answer) January 1, 2014

December 1, 2014