Affordable Health Care Act – Small Businesses
Affordable Health Care Act mainly focuses on reducing health care costs experienced by Americans. Its main purpose is to increase number of insurance holders and provide them quality health care. The act is widely known as Obama Care and it's compulsory for people and specific businesses to comply with it.
Those small businesses, which carry less than twenty five employees are not required to register for Obamacare. However, if they register their employees and pay their premiums, then such businesses surely qualify for tax credits. When it started in 2010, a tax credit of 35% on premium costs was given to businesses. However, this tax credits is required to be adjusted in start of 2014, when it will be given at 50% of premium costs. The cap for non-profit business is adjusted at 25% of premium costs. In 2014, it will be further raised to 35%. Thus Obamacare proves to be beneficial for small businesses, who want to take benefit of tax credit.
Moreover in 2014, affordable insurance exchange will be given to individuals who do not hold any type of insurance. These exchanges help to reduce overall insurance costs for businesses and individuals due to high competition in insurance industry. It also prevents insurance companies from charging higher premiums, especially if any employee or dependent is suffering from serious health problems.
The exchanges will also include small business health options (SHOP). This program enables employers to offer variety of plans available from different insurers. It facilitates employers to pay premiums to SHOP rather than paying those individually to multiple insurers.
In 2014, it will become compulsory for business with more than 50 employees to offer qualified insurance plan for their full-time employees. Those businesses who fail to comply with this rule will be fined with $2000. This penalty is likely to increase in coming years as insurance premiums will rise. According to this law, all businesses are required to report employee health insurance on W.2 forms. The value shown would not be taxable! Affordable health insurance act provides complete details about tax credits and non-compliance penalties for small businesses. It can greatly affect business margins especially if businesses fail to comply with it.
Affordable health insurance act may seem a burden for business with more than 50 employees, since they are legally required to comply with it. However, it's considered a major step towards prosperous future of the country. It helps to improve standard of life of people and adds to overall success of nation's economy.
Those small businesses, which carry less than twenty five employees are not required to register for Obamacare. However, if they register their employees and pay their premiums, then such businesses surely qualify for tax credits. When it started in 2010, a tax credit of 35% on premium costs was given to businesses. However, this tax credits is required to be adjusted in start of 2014, when it will be given at 50% of premium costs. The cap for non-profit business is adjusted at 25% of premium costs. In 2014, it will be further raised to 35%. Thus Obamacare proves to be beneficial for small businesses, who want to take benefit of tax credit.
Moreover in 2014, affordable insurance exchange will be given to individuals who do not hold any type of insurance. These exchanges help to reduce overall insurance costs for businesses and individuals due to high competition in insurance industry. It also prevents insurance companies from charging higher premiums, especially if any employee or dependent is suffering from serious health problems.
The exchanges will also include small business health options (SHOP). This program enables employers to offer variety of plans available from different insurers. It facilitates employers to pay premiums to SHOP rather than paying those individually to multiple insurers.
In 2014, it will become compulsory for business with more than 50 employees to offer qualified insurance plan for their full-time employees. Those businesses who fail to comply with this rule will be fined with $2000. This penalty is likely to increase in coming years as insurance premiums will rise. According to this law, all businesses are required to report employee health insurance on W.2 forms. The value shown would not be taxable! Affordable health insurance act provides complete details about tax credits and non-compliance penalties for small businesses. It can greatly affect business margins especially if businesses fail to comply with it.
Affordable health insurance act may seem a burden for business with more than 50 employees, since they are legally required to comply with it. However, it's considered a major step towards prosperous future of the country. It helps to improve standard of life of people and adds to overall success of nation's economy.