GNYADA August 2017 Newsletter

DMV Changes Used Car Bond Requirements 10

DMV has increased the amount required for used car facility bonds. The new surety bond amounts are: $20,000 – used car or wholesale dealer that sold 50 or fewer vehicles in the previous calendar year $100,000 – used car or wholesale dealer that sold more than 50 vehicles in the previous calendar year If you have a combined new and used car operation, your new car bond of $50,000 will cover both operations as long as they have the same facility number. If you have a separate used car operation with its own facility number, you will need to hold two separate bonds. n n

GNYADA offers Bonds for Dealers GNYADA members selling 50 or more used cars per year, out of a standalone facility, can obtain a two-year bond for $100,000 at a $875 premium. The premium for the $20,000 bond is $350. Other Bonds Available More than three-quarters of dealers in Greater New York obtain their bonds through GNYADA. The Association offers the lowest rates in the State on new car dealer surety bonds, in addition to helping dealers with ERISA Bonds, Permit Bonds for Construction, Utility Bonds, Second Hand Dealer Bonds, and more. Call Jennifer Berman at 718.746.5900, or email jennifer@gnyada.com , to obtain the proper bond for your dealership.

The Affordable Care Act Is Still In Force 11

Much has been reported and discussed regarding possible changes to the Affordable Care Act; at present, the reporting requirements for busi- nesses have not changed. Businesses with 50 or more full time equivalent employees are still required to comply with all ACA reporting requirements. Unless those specific requirements are changed, affected dealerships must continue to report. There are several healthcare reforms scheduled to take effect in 2017, which dealers are advised to keep an eye on. These changes will not affect reporting requirements, but will impact what businesses pay in taxes

and what employees pay in deductibles and copays:

$14,300 for family coverage. The $695 penalty related to the Individual Mandate will be adjusted to a higher amount, although the maximum penalty will remain at 2.5% of income. If you should have any questions or concerns about employee health benefits, please contact the GNYADA Insurance Brokerage at n

The Health Insurance Tax (approximately 2.3% of the premium), which was imposed on individuals that did not have health coverage and did not qualify for an exemption in a given year, will be suspended for the year 2017. The Transitional Reinsurance Program (TRP) will end. The TRP charged fees to health plans as an effort to stabilize premiums in the individual market. The maximum out-of-pocket limits for non-grandfathered plans will increase to $7,150 for single and

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718-746-8100 or email mconway@gnyada.com .

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • August 2017 7