If you operate a small business, or even if you work for one, you are probably wondering how Obama Care is going to impact your livelihood. Well, there are several ways that Obamacare is going to change the way small businesses operate.
Obama Care and SHOP
First, you should know that Obama Care has caused the creation of SHOP, which stands for the Small Business Health Options Program. The rising costs of health insurance in the United States have led to many small businesses not providing health insurance for their workers. However, larger businesses have actually found health insurance for employees to be more affordable because they get large group discounts on that health insurance.
The creation of SHOP through Obama Care means that small business owners should be able to find more affordable health care programs for their employees. In fact, small businesses that have less than 25 full-time equivalent (FTE) employees may be eligible for tax credits, if those employes earn less than $50,000 per year on average.
Obama Care also provides a few other small business benefits. One of those benefits is that smaller businesses get better tax breaks. This means that small businesses will be helped more than large businesses. So, in a sense, the playing field will be leveled a bit.
Another benefit is that businesses that are on the cusp between being small and large can get breaks, too. For example, business that have more than 50 FTE employees don’t have to pay fees for the first 30 of those employees.
Obama Care Full-Time Cut Backs
Of course, Obama Care can create a few problems for small businesses, too. For example, starting in 2015 any companies with more than 50 FTE employees will be required to get insurance for their full-time workers or pay a “shared responsibility fee.”
Some businesses are already taking measures to try to make sure that they won’t have to deal with that problems. They are getting around the issue by hiring more part-time workers and cutting the hours of their formerly full-time workers. So, some workers may find that they no longer have as many work hours as they need to earn a decent living and they may also have to pay for their own health insurance on top of that.
The unfortunate part is that those actions won’t help business owners either. That’s because the law doesn’t actually count the number of full-time employees. Instead, it counts the number of hours worked. If the number of work hours is equivalent to more than 50 full-time workers working full-time shifts, the company will be subject to the Obama Care small business mandate.
The bottom line is that the Obama Care small business mandate is actually meant to help small businesses keep up with larger businesses. It isn’t meant to make small businesses close their doors. However, if you still have concerns about how Obama Care will impact small businesses, visit http://www.whitehouse.gov/healthreform for more information.