Obamacare effect on small business health care insurance
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Obamacare effect on Small Business Health Care Insurance
Health Insurance is an attractive benefit for employees. However, small business health care insurance has been affected by the changes that Obamacare has brought in over the last few years. Some aspects of the new law make it harder for small business owners to provide cover to their employees. They increase the cost of healthcare and this affects small businesses the most. However, there are ways in which you can tackle these issues; while there are also important new rules to remember if you’re trying to circumvent regulations with very obvious tactics (Hint! The IRS is watching!).
Read on to understand small business health care insurance in the light of Obamacare.
As a small business owner, if you provide limited cover to employees it is hard to satisfy the Obamacare mandate. However, if you continue to stay small, that is hire under 50 employees, the mandate will not apply. This is quite disheartening for small business owners, who’re usually fully of ambition and enthusiasm to expand. How can businesses that don’t want to bear the costs of small business health care insurance under Obamacare grow? Well, many business owners are registering separate businesses, essentially part of the same business but operating legally as a separate entity.
However, beware, as you can’t escape from the IRS! If you’re a small business owner with more than three separate businesses and each of them has under 50 employees, it will be counted as a single business and you will have to avail of a small business health care insurance plan that covers them all.
Another way to avoid small business health care insurance is by hiring part-time labor. A small business needs as many resources as it can get. If you’re looking to fill a particular position and you think you can get the work done for less than 30 hours a week by a talented part-timer, go right ahead and get a part-time employee. Many businesses are doing this to avoid meeting the mandate of the Affordable Care Act. This doesn’t necessarily mean that they’re shirking their responsibility, but many businesses in the ‘growth’ phase simply can’t afford small business health care insurance to cover all their employees! If you’re considering hiring part-time employees, remember to make sure that none of them work over 29 hours. The IRS is growing vigilant with the rising number of part-time employees in the country. An alternative to part-time employee is an independent contractor, and you might want to consider the option as well.
Employers Resource helps every business at all stages with growth and development. Find out more! Call us today at (800) 559-2350.
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