The Ultimate Guide To Obamacare for Small Businesses

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In todays article we are going to continue our series on How to Hire and Manage with a view on everything that an owner of a small business needs to know about Obama Care, so lets get started!

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The Ultimate Guide To Obamacare for Small Businesses

  1. 1. the ultimate guide to obamacare for small businesses by FitSmallBusiness.com
  2. 2. how will the affordable care Act impact your business?
  3. 3. This guide is designed to explain the key features of the Affordable Care Act, also known as Obamacare.
  4. 4. Part I of this guide Introduces the key features of the Affordable Care Act. Part II explains how Obamacare will impact small businesses of different sizes.
  5. 5. part I: the key features of #2 The major job Boards obamacare
  6. 6. Understanding the Size of Your Small Business The impacts of Obama care differ depending on the size of your small business. There four size categories: 1. Self-employed 2. Fewer than 25 employees. 3. 25-50 employees. 4. More than 50 employees.
  7. 7. Understanding the Size of Your Small Business The size of your small business is based on the number of “full-time equivalent employees”, or FTEs. FTEs are calculated by adding the total number of full time employees, plus the total number of parttime employee hours divided by 30.
  8. 8. Understanding the Size of Your Small Business For example, if your company has 20 full-time employees that work 40 hours/week, plus another 10 part-time employees that work 20 hours/week, you would calculate your FTEs as follows: 20 full time employees + (200 part-time hours ÷ 30) = 26.66 FTEs. In this case, your business would fall in the 25-50 employee range.
  9. 9. Shop Exchanges: The Small Business Health Options Program These are marketplaces designed specifically for small businesses. SHOP exchanges give small businesses greater purchasing power within a wide variety of Qualified Heal Plans (QHPs) that meet their budgets.
  10. 10. SHOP exchanges offer small business owners a number of benefits such as control over the coverage you offer and how much you pay toward employee premiums. If you use the SHOP exchange, you must offer coverage to all of your full-time workers and at least 70% of your employees must enroll in the SHOP exchange. For additional resources click here and here.
  11. 11. Small Business Tax Credit Tax Credits are available for small businesses that purchase through the SHOP exchange on a sliding scale depending on the number or employees and average annual wages.
  12. 12. The largest tax credits are available to small businesses with fewer than 25 FTEs. Currently, these businesses can apply for tax breaks of up to 35% of their contribution to employees premiums. In 2014, the tax credit amount will increase to 50% for small businesses, and 35% for non-profits.
  13. 13. In order to qualify for tax credits, insurance must be purchased on the Affordable Insurance Exchange for at least two years. The credits can be claimed on your income tax return with an attached Form 8941, which must show calculations for the credit.
  14. 14. In order to gain a greater understanding of your potential healthcare tax credits, see the Small Business Health Care Credit Estimator available here and check a great flowchart here.
  15. 15. The “Employer Mandate” Is a “shared responsibility” penalty fee for all employers with more than 50 FTEs that do not provide healthcare to their employees. This fee does not begin until 2015, and does not apply to small businesses with fewer than 50 FTEs.
  16. 16. For a visual explanation of how the “Employer Mandate” applies to you, see the flow chart here and this additional resource.
  17. 17. New Cost For Small Business 1. There is a $63 pre-existing conditions fee, which employers can pass on employees. 2. If Your Business makes more than $250,000 in taxable profit, you will have to pay a 0.9% increase on the current Medicare part A tax.
  18. 18. part 2: obamacare and #2 The major job Boards your business
  19. 19. The impacts of the Affordable Care Act differ according to the size of your small businesses. This section will help you identify how Obamacare impacts your business based on your number of FTEs.
  20. 20. SELF-EMPLOYED If you’re self-employed you can get coverage through the individual market of your state’s Health Insurance Marketplace. You will not use the SHOP Exchanges, but rather the Individual Marketplace. Please see this page for an explanation of your options and obligations. And here to purchase insurance.
  21. 21. FEWER THAN 25 EMPLOYEES Small business with fewer than 25 employees receive the greatest benefits from Obamacare. If your business has fewer than 25 employees, your business is exempt from the “Employer Mandate”.
  22. 22. Employers with less than 25 full-time workers each making less than $50,000 a year may also be eligible for cost assistance via premium tax credits if they use the SHOP exchange. Please see this page for an explanation of your options and obligations. And here to purchase insurance.
  23. 23. 25-50 EMPLOYEES Small business employers with 25-50 FTEs are exempt from the “Employer Mandate”, but will not have access to the same tax credits as those small businesses with fewer than 25 employees. Use the Small Business Health Care Credit Estimator to see if your business qualifies to Tax Credits.
  24. 24. Please see http://www.sba.gov/content/ employers-with-up-to-50-employees for a comprehensive explanation of your options and obligations.
  25. 25. MORE THAN 50 Small business employers with more than 50 FTEs can purchase health insurance through the SHOP Exchanges, and are not exempt from the “Employer Mandate”, which takes effect in 2015.
  26. 26. Furthermore, your business will not have access to the same tax breaks as those small businesses with fewer than 25 employees. Tax credits are available for small businesses on a sliding scale depending on the number of employees and average annual wages, so use the Small Business Health Care Credit Estimator to see if your business qualifies.
  27. 27. Please see http://www.sba.gov/content/employers-with-50-or-more-employees for a comprehensive explanation of your options and obligations.
  28. 28. For All Categories Be aware that if your business does $500,000 in annual dollar volume of business, you are required to notify your employees about the new Health Insurance Marketplace; inform them that they may be eligible for a premium tax credit if they purchase coverage through the Marketplace; and advise them that if they purchase a plan through the Marketplace, they may lose the employer contribution (if any) to any health benefits plan offered by the employer.
  29. 29. And Finally...
  30. 30. To learn how to be a more successful entrepreneur visit us at....
  31. 31. (Click The Link Below) www.FitsmallBusiness.com
  32. 32. (Click The Link Below) www.FitsmallBusiness.com
  33. 33. (Click The Link Below) www.FitsmallBusiness.com

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