Obama Care is a big buzz word in the business community. There is a lot of talk about the laws enacted by the Patient Protection and Affordable Care Act and how it will put folks out of business because of being forced to cover their employees with health insurance. People who own small businesses have been in a virtual panic since news of these changes in the way US health care is provided were made public.
The aim of Obama Care is simply to get the citizens of the United States insured so that they will have access to health care. If you own a business, however, you very well may be impacted by these policies.
Small businesses with less than fifty employees or any business that does not make $250,000 yearly in taxable income from profit will not be responsible for insuring their employees. This was one of the biggest issues when rumors of Obama Care first started to circulate in the media. Many wondered how already struggling mom and pop businesses and small, local retailers, restaurants and manufacturing companies were going to cover the cost of this new healthcare. The cost of insuring these workers is higher for small businesses because larger companies and corporations have access to “group discounts.”
Obama Care will create a “pool” of insurance providers and policies that are more affordable for employers. This will make it much easier to afford insurance, especially when combined with tax credits.
One of the ways in which Obama Care helps businesses insure their workers is with tax breaks that as many as four million small businesses in the United States will qualify for. These incentives will help employers pay for premiums to get their workers insured. Companies who have fewer than fifty employees who still choose to provide insurance to their full time workers will see a larger tax credit.
Larger companies, especially those in the highest tax brackets, will see some tax increases to help pay for Obama Care. Businesses which have an annual taxable profit of $250,000 will see a 0.9% tax increase. Bigger businesses may see higher rates. Capital gains will also be taxed for this program in the range of about 3%.
Businesses which, under the guidelines of Obama Care, are required to provide coverage for their employees and do not could see tax penalties that amount to several hundred dollars per person who should be insured.