If you are a small business owner, it’s likely that you are sorting through piles of information about the Affordable Care Act. New rules and regulations have many of you wondering just how exactly it applies to your business.
Well, when it comes to this new law, the size of your business matters. The law is intended to help small businesses meet the health needs of their employees by providing business owners with more choices and control over health insurance spending. The Act doesn’t require small businesses to provide health insurance to employees, but it does give tax breaks to some of those businesses that do.
The credit of up to 35 percent goes to those businesses that have less than 25 full-time equivalent employees, pay an average annual wages below $50,000 and give 50 percent or more toward employee health insurance premiums. This credit goes up to 50 percent for two years starting in 2014. Nonprofits will see a tax credit of 25 percent which will increase to 35 percent at the beginning of the new year.
Small businesses that have 50 employees or less can participate in the Small Business Health Options Program also known as SHOP. This is a place where small business employers can select low cost health coverage from a number of providers.
Most large firms, those that employ 50 or more full-time employees or full-time equivalent employees, offer health insurance to their employees; but, those businesses that don’t will likely face employer responsibility requirements.
Take steps to reduce health care costs even further by making wellness a top priority at your business. Your workers are at their best when they and their work environment are healthy, which helps to increase productivity and profits. Learn about the steps you can take to encourage a healthy lifestyle and a healthy organization in getAbstract summaries like ExecutiveHealth.com’s Leading Under Pressure: Strategies to Avoid Burnout, Increase Energy and Improve Your Well-Being, by Gabriela Cora and “The Advantage: Why Organizational Health Trumps Everything Else in Business,” by Patrick Lencioni.
Sources: www.sba.gov, www.whitehouse.gov/healthreform