Do you own or work for a small business?
Then you probably know that there have been significant changes as a result of the new Health Care Reform.
Depending on the size of the business, the requirements and benefits change.
Small businesses with less than 25 full-time employees have the advantage of receiving tax credits to help pay for employee premiums. Additionally, they will be able to offer their employees a range of plans from different insurers like larger companies do, while still receiving a single bill and writing a single check.
Businesses with fewer than 50 full-time employees are exempt from penalties and might also qualify for employer health care tax credits. However, they are encouraged to closely monitor their workforce so they don’t breach the threshold of 50 full-time employees and acquire steep penalties.
Larger companies, businesses with more than 50 full-time employees, will see the brunt of the changes the Affordable Care Act has brought. As of Jan. 2016, all companies with 50 or more full-time employees will be required to make some potentially costly adjustments.
Many large companies are struggling to comply with the regulations because they don’t have the personnel or budget to fulfill requirements. They are cutting employee hours, reducing hiring, or passing costs onto consumers or shareholders to meet the new regulations.
The first mandate is that they must track worker’s hours and absences. They will also be required to report to the IRS on the employee health care offered or not offered and how much they spend on health insurance. With this increased amount of record keeping and reporting, small businesses might have to hire more employees or spend more on human resource providers.
Secondly, companies with 50 or more full-time employees and will be required to offer employee health care coverage to their employees, or pay a penalty.
Lastly, these larger companies, as well as higher income employees, might be affected by some new taxes.
While we can speculate how the Affordable Care Act will affect small and large businesses alike, the only way to be sure of these changes and their affects is to let it play out.
Because the new Health Care Reform can be complicated, if you own a small business it would be worth your time to seek the advice of an insurance agent in order to make sure you are in compliance.
Don’t hesitate to contact us if you have any questions or concerns regarding the new Health Care Laws or your small business!