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5 Breaks for Small Business Brought to You by ObamaCare

April 23, 2013

ObamaCare

ObamaCare is the most controversial legislation passed in a while. Until single gender marriage is legislated, ObamaCare will wear that dubious crown. (Whether the single gender marriage issue will be legislated or sanctioned by the courts remains to be seen).

Not only is ObamaCare controversial, it is complicated and it will (like all legislation) benefit those who understand it and punish those who are ignorant of its details. However, whatever your view on ObamaCare, here are some breaks that ObamaCare provides to small businesses:

Note: the definition of small business seems to change in every section of the ObamaCare legislation.

1. Small businesses (less than 100 employees) will be able to get subsidies if they purchase insurance through an exchange. This could be source of significant cost savings. It will depend on the premiums that the exchanges demand which will differ from state to state.

2. ObamaCare provides tax credits to employers that provide health insurance for employees. The employers must have no more than 25 employees with average annual wages of less than $50,000.

These numbers change each year until the law is fully phased in. For 2013, a tax credit of up to 35% of the employer’s total contribution toward the health insurance premium for an employer with 10 or fewer employees that contributes at least 50% of the premiums.

3. Since 2011, ObamaCare provides grants for small employers that establish wellness programs.

4. Beginning in 2014, the law allows greater employee incentives under all wellness programs.

5. In 2014, employers with 50 or more employees that do not offer health insurance will pay a fee of $2,000 per employee (excluding the first 30 employees). However, small companies (less than 50 employees) will not pay this fee/penalty.

Avrum Aaron, Esq., a 1994 graduate of Columbia Law School, is the COO of Legal Outsourcing Partners, LLC. He can be reached at avrum@lop-llc.com. There is nothing more he likes in life than answering questions about ObamaCare.

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One Comment
  1. Andrew Spark permalink

    Not having to pay a huge new penalty is a “break” for small businesses?

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