Aa
So how is it going to work?
http://news.yahoo.com/obamacare-stay-big-challenges-remain-193812452--politics.html
The key elements that have already taken effect include the guarantee of free preventive care, a ban on insurers from denying coverage to sick children, a partial closing of the Medicare prescription drug coverage gap and letting people under 26 remain on a parent's policy.
There is also the issue of paying for contraceptives which to me, should not even be considered an issue.
One of my kids runs a restaurant in midtown Manhattan and at Penn station. They pay their employees a living wage and he is an amazingly flexible and compassionate employer. He voted for Obama, of course, but he is worried. He says if they have to provide their employees with medical coverage, they will go bankrupt.
I cannot find anything about this--does anyone have any information on this matter?
The key elements that have already taken effect include the guarantee of free preventive care, a ban on insurers from denying coverage to sick children, a partial closing of the Medicare prescription drug coverage gap and letting people under 26 remain on a parent's policy.
There is also the issue of paying for contraceptives which to me, should not even be considered an issue.
One of my kids runs a restaurant in midtown Manhattan and at Penn station. They pay their employees a living wage and he is an amazingly flexible and compassionate employer. He voted for Obama, of course, but he is worried. He says if they have to provide their employees with medical coverage, they will go bankrupt.
I cannot find anything about this--does anyone have any information on this matter?
No this is very good..much easier to follow.
What's funny is he isn't asking me for help, he will have it figured out in enough time. It is more that I am trying simply understand the issue.
Thank you so much H.
What's funny is he isn't asking me for help, he will have it figured out in enough time. It is more that I am trying simply understand the issue.
Thank you so much H.
This is what the IRS website says
What You Need to Know about the Small Business Health Care Tax Credit
How will the credit make a difference for you?
For tax years 2010 through 2013, the maximum credit is 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities. An enhanced version of the credit will be effective beginning Jan. 1, 2014. Additional information about the enhanced version will be added to IRS.gov as it becomes available. In general, on Jan. 1, 2014, the rate will increase to 50 percent and 35 percent, respectively.
Here’s what this means for you. If you pay $50,000 a year toward workers’ health care premiums – and if you qualify for a 15 percent credit, you save … $7,500. If you save $7,500 a year from tax year 2010 through 2013, that’s total savings of $30,000. If, in 2014, you qualify for a slightly larger credit, say 20 percent, your savings go from $7,500 a year to $12,000 a year.
Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments are more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments.
There is good news for small tax-exempt employers too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
And finally, if you can benefit from the credit this year but forgot to claim it on your tax return there’s still time to file an amended return.
Can you claim the credit?
Now that you know how the credit can make a difference for your business, let’s determine if you can claim it.
To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees (FTEs). Those employees must have average wages of less than $50,000 a year.
Let us break it down for you even more.
You are probably wondering: what IS a full-time equivalent employee. Basically, two half-time workers count as one full-timer. Here is an example, 20 half-time employees are equivalent to 10 full-time workers. That makes the number of FTEs 10 not 20.
Now let’s talk about average wages. Say you pay total wages of $200,000 and have 10 FTEs. To figure average wages you divide $200,000 by 10 – the number of FTEs – and the result is your average wage. The average wage would be $20,000.
Also, the amount of the credit you receive works on a sliding scale. The smaller the business or charity, the bigger the credit. So if you have more than 10 FTEs or if the average wage is more than $25,000, the amount of the credit you receive will be less.
http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers
What is a “small business”?
Under the Act, a small business is not specifically defined, but a number of sections of the law apply only to entities with fewer than 25 employees (for more detail see below.) However, under some sections of the law, the effective company size is 50 or 100 employees.
What are “insurance exchanges"?
Beginning in 2014, health insurance will be available to individuals and small businesses through state-run “exchanges.” These will require insurance companies to compete for business in the marketplace. The objective is to make it it easier for individuals and small businesses to obtain health insurance at a lower price.
The exchange program for small businesses, known as the Small Business Health Options Program (SHOP), will allow small businesses to pool together to increase their purchasing power. This will allow these businesses to offer health insurance to their employees at rates similar to those available to large corporations.
SHOP is available to small businesses with up to 100 employees, although states have the option to limit participation to businesses with 50 employees or less until 2016. If a business participating in SHOP grows to over 100 employees, it may continue to take advantage of the program. Beginning in 2017, states may opt to allow businesses with more than 100 employees to participate in SHOP as well.
The exchange program is also important because larger employers may be penalized if some of their employees opt to obtain insurance through an exchange and not through the company’s insurance plan (for more detail see below.)
http://hiring.monster.com/hr/hr-best-practices/workforce-management/employee-benefits-management/health-care-reform.aspx
I really can't find any crystal clear info
What You Need to Know about the Small Business Health Care Tax Credit
How will the credit make a difference for you?
For tax years 2010 through 2013, the maximum credit is 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities. An enhanced version of the credit will be effective beginning Jan. 1, 2014. Additional information about the enhanced version will be added to IRS.gov as it becomes available. In general, on Jan. 1, 2014, the rate will increase to 50 percent and 35 percent, respectively.
Here’s what this means for you. If you pay $50,000 a year toward workers’ health care premiums – and if you qualify for a 15 percent credit, you save … $7,500. If you save $7,500 a year from tax year 2010 through 2013, that’s total savings of $30,000. If, in 2014, you qualify for a slightly larger credit, say 20 percent, your savings go from $7,500 a year to $12,000 a year.
Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments are more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments.
There is good news for small tax-exempt employers too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
And finally, if you can benefit from the credit this year but forgot to claim it on your tax return there’s still time to file an amended return.
Can you claim the credit?
Now that you know how the credit can make a difference for your business, let’s determine if you can claim it.
To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees (FTEs). Those employees must have average wages of less than $50,000 a year.
Let us break it down for you even more.
You are probably wondering: what IS a full-time equivalent employee. Basically, two half-time workers count as one full-timer. Here is an example, 20 half-time employees are equivalent to 10 full-time workers. That makes the number of FTEs 10 not 20.
Now let’s talk about average wages. Say you pay total wages of $200,000 and have 10 FTEs. To figure average wages you divide $200,000 by 10 – the number of FTEs – and the result is your average wage. The average wage would be $20,000.
Also, the amount of the credit you receive works on a sliding scale. The smaller the business or charity, the bigger the credit. So if you have more than 10 FTEs or if the average wage is more than $25,000, the amount of the credit you receive will be less.
http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers
What is a “small business”?
Under the Act, a small business is not specifically defined, but a number of sections of the law apply only to entities with fewer than 25 employees (for more detail see below.) However, under some sections of the law, the effective company size is 50 or 100 employees.
What are “insurance exchanges"?
Beginning in 2014, health insurance will be available to individuals and small businesses through state-run “exchanges.” These will require insurance companies to compete for business in the marketplace. The objective is to make it it easier for individuals and small businesses to obtain health insurance at a lower price.
The exchange program for small businesses, known as the Small Business Health Options Program (SHOP), will allow small businesses to pool together to increase their purchasing power. This will allow these businesses to offer health insurance to their employees at rates similar to those available to large corporations.
SHOP is available to small businesses with up to 100 employees, although states have the option to limit participation to businesses with 50 employees or less until 2016. If a business participating in SHOP grows to over 100 employees, it may continue to take advantage of the program. Beginning in 2017, states may opt to allow businesses with more than 100 employees to participate in SHOP as well.
The exchange program is also important because larger employers may be penalized if some of their employees opt to obtain insurance through an exchange and not through the company’s insurance plan (for more detail see below.)
http://hiring.monster.com/hr/hr-best-practices/workforce-management/employee-benefits-management/health-care-reform.aspx
I really can't find any crystal clear info
What I am trying to say through my fog is so it looks like you can assume some sort of tax credit that will help offshoot the costs.
Okay, hope thats better
Okay, hope thats better
sorry for the typos
Beginning March 1, 2012, businesses with more than 50 FTE are required to inform all staff in writing that there is a health insurance exchange, how to contact the exchange, and that the staff members might be eligible for a tax credit that serves as premium assistance. The employer must notify staff if they opt for a health insurance plan on the exchange, and the employees will not have the same tax advantages they would under their employer's plan.
So then one can surmise that for those business w/50+ employees (FT) receive tax higher tax credits..so then are the credits significant enough to keep the business afloat?
Here is the law on the credits:
"The health care reform package provides a temporary sliding-scale small employer tax credit to help offset the cost of employer-provided coverage. Generally, a small employer is one with no more than 25 employees and average annual wages of less than $50,000.
In 2010 through 2013, eligible employers may qualify for a tax credit for up to 35 percent of their contribution toward the employee’s health insurance premium. In 2014 and beyond, eligible employers that purchase coverage through an insurance exchange may qualify for a credit for two years of up to 50 percent of their contribution. Qualified tax-exempt employers would be eligible for a reduced credit. Salary reduction contributions are not counted.
Employers with 10 or fewer employees and average annual wages of less than $25,000 are eligible for the full credit. These wage limits are indexed for inflation.
"The health care reform package provides a temporary sliding-scale small employer tax credit to help offset the cost of employer-provided coverage. Generally, a small employer is one with no more than 25 employees and average annual wages of less than $50,000.
In 2010 through 2013, eligible employers may qualify for a tax credit for up to 35 percent of their contribution toward the employee’s health insurance premium. In 2014 and beyond, eligible employers that purchase coverage through an insurance exchange may qualify for a credit for two years of up to 50 percent of their contribution. Qualified tax-exempt employers would be eligible for a reduced credit. Salary reduction contributions are not counted.
Employers with 10 or fewer employees and average annual wages of less than $25,000 are eligible for the full credit. These wage limits are indexed for inflation.
San Diego, CA (PRWEB) October 31, 2012
While the PPACA became law in March 2010, many business owners opted to take a "wait and see" approach as far as making plans to ensure they are in compliance when the law fully goes into effect on July 1, 2014.
These businesses wanted to see how the Supreme Court ruled on the constitutionality of the "individual mandate," which requires most Americans to obtain medical insurance though their employer, insurance exchanges, or in the private market. Since the Supreme Court upheld this provision of the PPACA, business owners need to find out what particulars apply to them and make plans so they are in compliance. Given the complexity of the provisions contained in the 1,000 pages of the PPACA, most people find they will need some professional guidance to make sure they understand how these laws apply to their situation. That being said, there are some general guidelines that apply to all businesses. Other general guidelines pertain to businesses of a particular size.
General Guidelines That Apply to All Businesses
While employers are not legally obligated to provide health insurance for their employees, businesses with more than 50 full time equivalent (FTE) employees might have to pay a "free rider” penalty. Businesses with fewer than 50 will not have to offer their employees health insurance but can receive a tax credit if they choose to cover 50 percent of the cost of an individual policy for each of their employees and the average annual wages per employee are less than $50,000.
If your business offered health insurance coverage and employees were covered on March 23, 2010, as long as the insurance meets minimal coverage mandates required by the PPACA, the employees can keep the coverage. Otherwise, small businesses and individuals will need to purchase private health insurance on their state's Affordable Insurance Exchange.
Guidelines Applicable to Employers With More Than 50 FTE Employees
Beginning March 1, 2012, businesses with more than 50 FTE are required to inform all staff in writing that there is a health insurance exchange, how to contact the exchange, and that the staff members might be eligible for a tax credit that serves as premium assistance. The employer must notify staff if they opt for a health insurance plan on the exchange, and the employees will not have the same tax advantages they would under their employer's plan.
Businesses who have more than 50 FTE have the choice of offering their employees a health insurance plan with the following benefits:
• Adult children can be covered under the plan until they are 26
• There are no annual or lifetime maximum coverage limits
• The plan provides coverage for pre-existing conditions
• There cannot be rescission of coverage
• There can only be a 90-day waiting period for coverage to begin
If the employer does not offer this coverage, the business may be subject to an assessable payment.
http://news.yahoo.com/patient-protection-affordable-care-act-ppaca-affects-business-071237007.html
This is the best explanation I could find that I could actually understand LOL
While the PPACA became law in March 2010, many business owners opted to take a "wait and see" approach as far as making plans to ensure they are in compliance when the law fully goes into effect on July 1, 2014.
These businesses wanted to see how the Supreme Court ruled on the constitutionality of the "individual mandate," which requires most Americans to obtain medical insurance though their employer, insurance exchanges, or in the private market. Since the Supreme Court upheld this provision of the PPACA, business owners need to find out what particulars apply to them and make plans so they are in compliance. Given the complexity of the provisions contained in the 1,000 pages of the PPACA, most people find they will need some professional guidance to make sure they understand how these laws apply to their situation. That being said, there are some general guidelines that apply to all businesses. Other general guidelines pertain to businesses of a particular size.
General Guidelines That Apply to All Businesses
While employers are not legally obligated to provide health insurance for their employees, businesses with more than 50 full time equivalent (FTE) employees might have to pay a "free rider” penalty. Businesses with fewer than 50 will not have to offer their employees health insurance but can receive a tax credit if they choose to cover 50 percent of the cost of an individual policy for each of their employees and the average annual wages per employee are less than $50,000.
If your business offered health insurance coverage and employees were covered on March 23, 2010, as long as the insurance meets minimal coverage mandates required by the PPACA, the employees can keep the coverage. Otherwise, small businesses and individuals will need to purchase private health insurance on their state's Affordable Insurance Exchange.
Guidelines Applicable to Employers With More Than 50 FTE Employees
Beginning March 1, 2012, businesses with more than 50 FTE are required to inform all staff in writing that there is a health insurance exchange, how to contact the exchange, and that the staff members might be eligible for a tax credit that serves as premium assistance. The employer must notify staff if they opt for a health insurance plan on the exchange, and the employees will not have the same tax advantages they would under their employer's plan.
Businesses who have more than 50 FTE have the choice of offering their employees a health insurance plan with the following benefits:
• Adult children can be covered under the plan until they are 26
• There are no annual or lifetime maximum coverage limits
• The plan provides coverage for pre-existing conditions
• There cannot be rescission of coverage
• There can only be a 90-day waiting period for coverage to begin
If the employer does not offer this coverage, the business may be subject to an assessable payment.
http://news.yahoo.com/patient-protection-affordable-care-act-ppaca-affects-business-071237007.html
This is the best explanation I could find that I could actually understand LOL
I went to a summer camp in the Poconos, lovely country.
Nice story about your son being a good employers, Rivil.
Nice story about your son being a good employers, Rivil.
LOL.
Poconos is in N.Y State? My geography isn't great.
He does deliver to the Colbert and Jon Stewart show on a weekly basis. He loves them. Who doesn't?
He is a regular guy but so incredibly awesome. His employees love him. He hired two African Muslims a some months ago and made accommodations in his office so they could do their daily prayers and let them come in after hours during Ramadan so they could break the fast and eat there. One of them just came back from a trip to his home country and brought him this huge clock that he held on his lap the entire trip just to give it to him
Such sweetness in the world.:-)
Poconos is in N.Y State? My geography isn't great.
He does deliver to the Colbert and Jon Stewart show on a weekly basis. He loves them. Who doesn't?
He is a regular guy but so incredibly awesome. His employees love him. He hired two African Muslims a some months ago and made accommodations in his office so they could do their daily prayers and let them come in after hours during Ramadan so they could break the fast and eat there. One of them just came back from a trip to his home country and brought him this huge clock that he held on his lap the entire trip just to give it to him
Such sweetness in the world.:-)
Does he deliver to the Poconos? I am starving! Very tough business to be in especially these days. I spent waaayyy to many hours in the kitchens. But when you love what you do you find ways to make these kind of issues work. Please give him my best :)
Sm-Thanks I will look into it and send him the link
Jules and Teko-Thank you, very encouraging!!
Jules and Teko-Thank you, very encouraging!!
Vance-That is so not helpful. My son has no regrets, he is just hoping that something can be worked out. I don't think all the kinks are worked out of the system and instead of that negativity you could either ignore the question, read what others say or if you really are interested use your brain to find some information about it.
Yes, I cold do that too, but stamina is real low these days so I am sort of limited in how much I can focus on.
My point is it really does not help to make statements like that when someone rolls out a problem Cabish?
Yes, I cold do that too, but stamina is real low these days so I am sort of limited in how much I can focus on.
My point is it really does not help to make statements like that when someone rolls out a problem Cabish?
Yes, exempt up till 50 employers and then there will be subsidys for employers who need them from what I understand, credits will be given to employers. I will look this up for a more complete answer and get back to ya all. Or you can go to wwwhitehouse.gov and it will be explained under the healthcare option.
TOL
3 cheers for Obamacare, hurting the small business.
I think 50 is the cut off but I think that is for full time employees. So if you have 25 part time and 25 full time I think they will be ok. Don't quote me on this :)
You can go online I think to the whitehouse web site and get the whole bill. It is about 2000 and something pages long. I've tried to read it--- not written for your average citizen to understand but none the less, it is there for all to see. Not sure what the penalty is. good luck to your son
Oh rats, then yes, I think that he falls under the business owner responsibility for providing insurance.
Yes, he has just over 50 employees.
I think there it also matters how many employees you have. Under 50 may be exempt?? Don't quote me on that but I think that may be the case.
I don't know if it's correct or not, but I've heard that employers who fail to provide insurance coverage will have to pay a fine. I've also heard that many will prefer to pay the fine, as it will be less expensive.
Some of the others who are more in tune with the healthcare act will be able to answer better.
Some of the others who are more in tune with the healthcare act will be able to answer better.
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