business matters

JIM Denton
L edger Lines

Dont Be Surprised By the Individual Mandate

ome might say that Im a control

freak because I just dont like
surprises. Not surprise birthday
parties, surprise baby showers or shotgun
weddings. I dont like surprise IRS notices
for sure, so no surprises please!
Just so you wont be surprised, you
should know we already have passed the
deadline for individuals and families to
obtain health insurance coverage or be
penalized on their tax returns. If youre not
covered by health insurance, the penalty
is the greater of 1 percent of household
income above the single filing threshold of
$10,150 or $95 per person and $47.50 per
child up to $285 per family. The penalty
will be paid on your IRS form 1040.
For example, if your yearly household
income is $110,000 and you did not
maintain coverage, the individual mandate
penalty would be $998.50 ($110,000
- $10,150 = $99,850 x 1% = $998.50).
Conversely, if your yearly household
income is $20,000 and a family of four
(two adults and two children), the penalty
would be $285 ($95 x 2 = $190 + $47.50
x 2 = $285). The penalty increases to 2
percent of household income or $325 per
person in 2015 and to 2.5 percent and
$695 in 2016.
If you missed the deadline, and you
signed up to buy health insurance later,
the penalty is prorated for the number of
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August 2014 | The Business Times

months during the year that you were not

covered. Even though the Marketplace is
currently closed, open enrollment starts
again in November, you still can purchase
insurance on your own through employers
and private insurance companies.
There are some exceptions to the rules,
such as:
You were uninsured for less than
three months.
The lowest-priced insurance would
cost more than 8 percent of your
household income.
You dont have to file a tax return
because your income is too low.
You are a member of federally
recognized tribe or are eligible for
services through an Indian Health
Service provider.
You are a member of a recognized
health care sharing ministry.
You are a member of a recognized
religious sect with religious objections
to insurance including Social Security
and Medicare.
You are incarcerated, and not
awaiting the disposition of charges
against you.
You are not lawfully present in the
United States.
Another tax item to consider is the
credit that must be calculated for those
who purchased their insurance in the

Marketplace. This credit is also known as

the government subsidy. According to the
IRS, you must meet certain criteria to be
eligible for the credit.
You are eligible for the credit if you:
Buy your health insurance through
the Marketplace;
Are ineligible for insurance through
an employer or government plan;
Are within certain income limits;
Do not file a Married Filing
Separately tax return; and,
Cannot be claimed as a dependent by
another person.
Individuals who qualify for the credit
can choose to get the credit now and have
it sent directly to their insurance company
or claim the full amount when they file
their 2014 or 2015 tax returns.
Recently, a panel of judges from a
federal appeals court ruled that the IRS
could not grant premium tax credits due to
ambiguous wording in the original law. At
this writing, the decision is under review.
Nevertheless, dont be surprised come
filing time. Surprises are not fun.
JIM DENTON is a CPA and a managing
partner with Arledge & Associates P.C. in
Edmond. He may be reached via email at
jim@jmacpas.com.

Business Briefs
Cole promoted at Arledge and Associates
Ann M. Cole has been promoted
to senior audit manager at Arledge
and Associates PC, the Edmond
accounting firm announced.
A Certified Public Accountant
and Chartered Global Management
Accountant, Cole previously
served the firms clients as an audit
manager. She will continue to work
directly with clients in her new
leadership role.
Anns background includes
Ann M. Cole
service with the states auditor
and inspector as well as in private
industry as a controller and chief financial officer, said Jim Denton,
the firms managing partner. Having experienced the auditing
process from both sides of the table gives Ann the qualifications and
knowledge to help guide our audit team.
Cole received her masters degree in accountancy from the
University of Oklahoma in 1996 after earning her bachelors degree in
accounting from OU in 1991.
Arledge & Associates, PC is a recognized leader in the accounting
industry offering practical solutions in the areas of tax planning,
auditing, consulting, accounting advisory services and client
accounting.

Blog ranks Edmond as fourth safest city in state

A real estate blog has ranked Edmond as the fourth safest city in
Oklahoma.
The blog published by Movoto, an online real estate brokerage
based in San Mateo, Calif., says it has been researching each state to
determine which cities, towns and places are safer than the rest by way
of an objective analysis.
Movoto stated it listed the 10 safest places in Oklahoma to help
relocating citizens quickly access relevant information such as the
cost of living, the quality of schools and how safe the community is.
The safest cities according to the list are, in order: Yukon, Mustang,
Sapulpa, Edmond, Owasso, Guthrie, Broken Arrow, Elk City,
Claremore and Guymon.
Edmond Police Department spokeswoman Jenny Monroe said the
agency prides itself on providing a high level of service.
Our officers and staff take this as a compliment, she said. We
continuously strive to improve the level of service that we provide to
the residents of our community.
Monroe said Edmond was the 28th safest city in the U.S. for
cities above 75,000 in the FBIs most recent Uniform Crime Reports,
which are based on violent crimes. The UCR also ranks Edmond first
among the largest and safest Top 10 cities in the state, and the city is
among the Top 10 safest in property crimes, Monroe said.
Movoto says it uses criteria that are not 100 percent scientific,
and its goal is to spark a discussion about a city. It strives to make the
rankings accurate, and tries to use authoritative sources including data
from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics and
the U.S. Centers for Disease Control.
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August 2014 | The Business Times

Allstate names Edmond owner as Agent of the Year

As a business leader and
involved citizen in the Edmond
area, Allstate exclusive agent Larry
Dumas Jr. has been designated an
Oklahoma Exclusive Agent of the
Year for his outstanding business
performance and commitment to
putting customers at the center of
his agencys work.
The Oklahoma Exclusive Agent
of the Year designation goes beyond
successful business results, said
Larry Dumas Jr.
Jim Turner, regional sales leader
for Allstate. This honor also
demonstrates Larrys commitment to taking care of customers and
helping them protect what matters most.
Dumas and his staff are dedicated to helping customers meet their
protection and retirement needs while managing a successful small
business.
Its a tremendous honor to be named an Oklahoma Exclusive
Agent of the Year, Dumas said. Our agency works hard to provide
above and beyond service to the Edmond community, and were
thankful for all the loyal customers who continually allow us to earn
their business.
The agency is at 1800 S. Boulevard in Edmond and Dumas can be
reached at 340-6500.

University of Central Oklahoma recognized as having a friendly

work environment
The Chronicle of Higher Education named the University of
Central Oklahoma as one of the 2014 Great Colleges to Work For.
Central is the only higher education institution in the state
recognized on the list and one of only a handful of institutions in the
nation given the distinction of being named to the Honor Roll for
being cited most often among all the recognition categories.
Central joins Duke, Baylor and Notre Dame on the list of the 10
universities named to the large institution honor roll.
University of Central Oklahoma President Don Betz said the
results of the survey reflect the spirit of teamwork, communication
and high morale among Centrals faculty and staff.
Centrals inclusion on The Chronicle of Higher Educations list
as a Great College to Work For is a reflection of a university-wide
commitment to a culture of learning, leading and serving, Betz
said. Our talented faculty and staff are at the very core of Centrals
mission to prepare students to become productive, creative, ethical
and engaged citizens and leaders and so we strive to create a campus
community where our faculty and staff can thrive.
Results were determined through a direct survey of faculty and staff
at universities and colleges throughout the country. This is the sixth
time in the past seven years the university has been named to the list,
with past recognition in 2008, 2010, 2011, 2012 and 2013.
The survey ranked colleges and universities in 12 categories.
Centrals peer group in the poll included universities and colleges that
have 10,000 or more students. Central has more than 2,900 full and
part-time employees and is one of Edmonds largest employers.