How Your Small Business can Benefit from the Health Care Reform

From the very beginning, there has been a lot of talk about the Health Care Act. There have been the naysayers and those in full support of it. 

People have called it many names and screamed that it is unconstitutional. That is until the Supreme Court declared it constitutional.

At Linton and Associates, we support the Health Care Reform because it can help to bring quality health care to those who previously did not have access to it. 

As for small business owners out there, it can help you, too. You just need to know what to do and how to reap the benefits. This blog will show you some of those answers.

Rules…Always Rules

The biggest and most obvious rule put into play by the Health Care Reform is, of course, mandated insurance, but that does not really affect businesses. It just impacts the individual employee, which is why we are bringing it up. Employers should keep in mind that it may be in everyone’s best interest for them to begin providing health insurance through the state exchanges.

Next, we have the rule that affects businesses with 50 or more employees. Now you may be thinking, “Why talk about a bigger business, should not this just be covering the smaller businesses?” 

What is big and what is small? Everyone has their opinions on the matter. Sure, 50 employees is quite a lot to someone with 10, but it’s nothing compared to one with 100. The bottom line is that this next part is important.

If your business has 50 or more employees, you absolutely must provide them with substantial health care (60% coverage at the very least and the fees cannot be more than 9.5% of the families salary).  If you do not follow this rule, then you will face fines and these are very steep fines as they start at about $40,000. Yes, that is a lot of zeros, so please if you have 50 or more employees or will by 2014, get them covered.

Contact us as we can help you get ready for these changes and set you up with affordable health care coverage.

Reaping the Rewards

Okay, so the rewards may not seem that great. However, there is a major way to benefit from this whole ordeal if you are a small business (which is defined as having fewer than 25 employees that average less than $50,000 a year).

Thanks to that tax credit from 2010 staying in play, it pays to insure your employees. You can get a substantial tax credit and build towards a nice return, which is always good.