As an employer, if you already provide health insurance to your employees, the new healthcare changes won’t affect you. However, if you don’t provide insurance and you employ over 50 full-time employees, by January 1, 2014, you will be required to purchase health coverage for them, or suffer a penalty.
It has been cost-prohibitive for many small business owners to provide insurance to their workers. “Today almost half of America’s uninsured are small business owners, employees or their dependents.”—ObamaCare Facts
The benefit of Obamacare is that it will offer small businesses much more affordable health options and tax credits as incentive. Being able to provide employees with improved health care is a win-win situation for all, because better health for employees means greater productivity and less sick days.
If, as a business owner of over 50 full-time employees, you choose not to provide health insurance to your workers, you will be subject to an “employer responsibility requirement” tax penalty. This penalty will also apply if the coverage you do provide to your employees is too expensive, or doesn’t meet the minimum standards (ie: “Bronze plan”).
If you have less than 50 employees, you can opt to not provide health coverage to your employees without being penalized. If you employ fewer than 25 full-time employees and you do provide coverage to them, you can apply for a tax break of up to 35% of the cost of your employees’ premiums. It is the small businesses with less than 25 employees that stand to benefit the most from Obamacare. Not only will employers be able to offer their workers better health plans, they will receive tax breaks from doing so.
Members of the California Cosmetology Association—Ask us about our automatic acceptance group health insurance.