Beginning in 2014 Obamacare will fine companies that fail to provide health insurance to their employees. Because small business owners often don’t offer insurance coverage and large business owners to offer it seems like small business owners are getting slammed.
Obamacare actually rewards employees at small businesses by heavily subsidizing their health insurance. Since employees cannot take the subsidies with them if they move to a large company, subsidies actually benefit the small business owner. This allows you, the small business owner, to hire great employees at a great rate.
Employees at small companies are eligible to receive the subsidies, even though their employers are exempt from the penalties.
Obamacare also created tax credits for small business owners that you are already able to receive. Sometimes small business owners feel these credits have too many strings attached to be attractive to employers. Working with a payroll management company like Enterprise can help you work through the tax implications.
If you are like most small business owners, you hate dealing with paperwork, might even be the reason you don’t offer insurance to your employees in the first place. The application for the subsidies alone is 21 pages long that must be completed by each employee. A payroll partner can also help with this. We make sure that your employees have filled out the correct paperwork for their benefits.
A business like yours might experience a little direct harm from Obamacare but you may benefit on the whole. Business competitors could be harmed even more. Larger competitors have to be careful because expanding their business from 49 to 50 employees could cost them $40,000 annually in penalties. That isn’t even counting their salary and other benefits.
