No getting around it. People are passionately divided on the issue. And if you’re a business owner, large or small, it will probably have some affect on you. I read a good article at Manta today about it and was somewhat relieved it wouldn’t go into effect until 2014. A couple of key things I learned:
Requirement to provide health care coverage: While employers won't technically be required to provide health care coverage, organizations with 50 or more employees that don't offer health care coverage will be subject to a tax penalty of $2,000 per employee.
Small business provisions: The PPACA (Patient Protection and Affordable Care Act ) will require the creation of state-operated exchanges that would permit self-employed workers, small businesses and people without health care coverage to shop for coverage. By 2014, states are to set up Small Business Health Options Programs, or "SHOP Exchanges," which will allow small businesses to create pools to buy health care plans. Small businesses are those with up to 100 employees.
Tax Credit Helps Small Employers Provide Health Insurance Coverage: In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. The maximum credit is 35% of premiums paid in 2010 by eligible small business employers and 25% of premiums paid by eligible employers that are tax-exempt organizations. In 2014, this maximum credit increases to 50% of premiums paid by eligible small business employers and 35% of premiums paid by eligible employers that are tax-exempt organizations.
While there is much more to the PPACA than the few provisions I mention above, it’s definitely something to think about in the (quickly passing) years between now and 2014. How will you (and I) react today to ensure we can adapt to the new rules? How will we streamline our business processes, our payroll, and our reporting to ensure we save dollars today – and tomorrow? I don’t know about you but I don’t want to be one of those businesses making decisions in haste and regretting the fact that I’m in a desperate situation. Today’s accounting and financial management software, Microsoft Dynamics GP, can help you prepare your business to take ADVANTAGE of business changes. It’s that tried-and-true business principle of being proactive as opposed to reactive.