1. Presented By: Kathleen Alexander, CPA, MST │ Principal Sax Macy Fromm & Co., PC December 5, 2012

2. Implementation Schedule New Taxes and Fees Effective in 2010: Small Business Tax Credit 10% Tanning Excise Tax Tax on innovator drug companies Effective in 2011: Increased penalty on non-qualifying HSA distributions Effective in 2012: W-2 Reporting Annual fee imposed on pharmaceutical industry Effective in 2013: 3.8% surtax on investment income 0.9% increase in Medicare tax on high earners, and unearned income 2.3% medical device excise tax Effective in 2014: Employer mandate tax Individual mandate excise tax Tax on Health Insurers Effective in 2018: 40% excise tax on “Cadillac” plans March 2010: Obama signed into law the Patient Protection & Affordable Care Act as modified by the Health Care & Education Reconciliation Act of 2010

3. Top 5 TaxProvisions

4. 25 FTE Small Business Tax Credit Effective 2010

5. $200,000 single/ $250,000 joint New Income Thresholds Effective 2013

6. 3.8% Medicare Tax on Unearned Income Effective 2013

7. 0.9% Medicare Tax on Wages & Self-Employment Income Effective 2013

8. 50 / 50 # Employees for Employer Mandate Effective 2014

9. 40% “Cadillac Tax” Effective 2018

10. $2.3 billion tax on Innovator Drug Companies (effective 2010) 10% excise tax on Tanning Services (effective 2010) $2.5 billion in annual fees on Pharmaceutical Industry (effective 2012) 2.3% excise tax on Sales of Medical Device (effective 2013) $8 - $14.3 billion tax on Health Insurers (effective 2014 - 2018) Other Industry Tax Provisions

11. Presented By: Kathleen Alexander, CPA, MST Principal │ Sax Macy Fromm & Co., PC KAlexander@SMF-CPA.com (973) 472 - 6250 SAX MACY FROMM & CO., PC ● 855 Valley Road ● Clifton, NJ 07013 www.smf-cpa.com