<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40"><head><META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 12 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>The Affordable Care Act has raised many questions for OEBB, entities and our members. Many of you received an email on December 16, 2010 from a payroll tax list serv with instructions about how to update W-2’s for the 2010 tax year due to the expansion of dependent qualifications under the federal tax code, but not the Oregon tax code.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>During Open Enrollment 2010, OEBB removed requirements from overage dependents through age 25, in line with the federal Healthcare Reform Act. Most educational entities already allowed coverage for overage dependents through age 25, but this expanded eligibility allowed OEBB members to enroll overage dependents in health care plans regardless of their marital, income or school status. Some entities had a lower age requirement prior to healthcare reform and thus had to increase their age requirement in addition to allowing married and non-student dependents to be added to coverage. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>In response to the Affordable Care Act, OEBB created a report that will allow educational entities to identify overage dependents and provides a coverage effective date. This report should be helpful if you are trying to determine which covered dependent(s) may be subject to the imputed value tax under Oregon tax law.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>You may request the “Overage Dependent Activity Starting January 2010” report through the OEBB Reports Inbox at:<o:p></o:p></p><p class=MsoNormal><a href="mailto:Oebb.reports@state.or.us">Oebb.reports@state.or.us</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>We know that many of you rely on other sources for imputed values for dependents that do not qualify as a dependent for tax purposes. However, OEBB has posted Affordable Care Act Imputed Values that entities may choose to use instead of developing their own or receiving from another third party. They can be found at the link below.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#1F497D'><a href="http://www.oregon.gov/DAS/OEBB/entity/eeResources.shtml">http://www.oregon.gov/DAS/OEBB/entity/eeResources.shtml</a><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Educational Entities are welcome to use the imputed values provided by OEBB, or create their own formulas. Questions regarding how much premium to tax or which dependents to tax should be directed to your CFO or tax advisor. OEBB is unable to make these determinations for you.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>We hope this information is helpful to you. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><i><span style='font-size:13.5pt;font-family:"Comic Sans MS";color:maroon'>Linda Tullis</span></i><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>Benefits Manager</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>Oregon Educators Benefit Board</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>1225 Ferry Street SE</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>Salem, OR 97301</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>Office: (503) 378-3329</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Comic Sans MS"'>Fax: (503) 378-5832</span><o:p></o:p></p></div></body></html>