New policies related to healthcare have many small business owners concerned of what is to come in 2014. News reports are tossing around penalty figures of $2000 per person per year. And that is just the start of the penalty scale. Bernardini & Donovan Insurance Services explains what a small business owner needs to know about his or her responsibilities under the Affordable Care Act:
- Small businesses won’t be penalized. Businesses that employ less than 50 full-time employees will not be held to the employer responsibilities outlined in the Affordable Care Act.
- However, you can qualify for a tax credit. A small business that pays average yearly wages of less than $50K, has less than 25 full-time employees and offers affordable health insurance could receive incentives in the form of a small business tax credit. Beginning in 2014, this credit could be up to 50 percent and will help offset group health insurance costs.
- You may have more buying power than you think. According to HealthCare.gov, the average small business pays 18 percent more for group health insurance than a larger company would. Small businesses that employ less than 100 people on average will have access to the Health Insurance Marketplace, reducing costs by giving access to plans seen by larger corporation.