Health insurance has been a major concern in the United States for a long time, because there are millions of Americans who do not have coverage. The Affordable Care Act was signed into law by President Obama in March 2010, as a means of providing coverage for Americans who need it. If you own your own business, there is a lot of information you should know about obamacare small business health insurance requirements.
A small business is typically defined as any organization or company that has more than fifty employees. To determine how many employees a company has, the Affordable Care Act, for calculation purposes, normally counts not only the full-time employees who work more than thirty hours per week, but it also includes the hours worked by the part-time employees at the company. The hours worked by the part-time workers is then aggregated to calculate the full-time equivalents.
This opportunity has been given because smaller companies paid more on average for coverage than larger businesses. To be eligible for this program, a company must offer coverage to each of its full-time employees, and at least seventy percent of those employees must be enrolled in the plan. In addition, the company must have an office within the region of a particular SHOP provider.
It is also important to remember that successor liability may be an issue if you are purchasing a company. This means that you could be liable for any fines if the previous owners of the company were not complying with the Affordable Care Act. Therefore, it is very important that you research their background and ask to see evidence that the company is in compliance with the Act.
It is hoped that, with this information, employees should be able to gain a better understanding of the system of coverage going forward. This may help them to properly weigh their options and choose the best method of coverage for themselves and their families when buying health insurance. The Department of Labor offers additional information regarding the Summary of Benefits disclosure.
It is also important to note that Medicare will also be affected by the Affordable Care Act, as there will be additional Medicare withholding taxes on wages. The portion of the hospital insurance tax which is payable by the employee under Medicare has increased from 1.45 percent to 2.35 percent. This affects those employees earning more than $200,000. This tax increase only affects the employees, as the portion paid by the employer remains at 1.45 percent.
It is wise to seek advice from an attorney if you own a small company. Find one who is familiar with tax laws, especially the Affordable Care Act.
A small business is typically defined as any organization or company that has more than fifty employees. To determine how many employees a company has, the Affordable Care Act, for calculation purposes, normally counts not only the full-time employees who work more than thirty hours per week, but it also includes the hours worked by the part-time employees at the company. The hours worked by the part-time workers is then aggregated to calculate the full-time equivalents.
This opportunity has been given because smaller companies paid more on average for coverage than larger businesses. To be eligible for this program, a company must offer coverage to each of its full-time employees, and at least seventy percent of those employees must be enrolled in the plan. In addition, the company must have an office within the region of a particular SHOP provider.
It is also important to remember that successor liability may be an issue if you are purchasing a company. This means that you could be liable for any fines if the previous owners of the company were not complying with the Affordable Care Act. Therefore, it is very important that you research their background and ask to see evidence that the company is in compliance with the Act.
It is hoped that, with this information, employees should be able to gain a better understanding of the system of coverage going forward. This may help them to properly weigh their options and choose the best method of coverage for themselves and their families when buying health insurance. The Department of Labor offers additional information regarding the Summary of Benefits disclosure.
It is also important to note that Medicare will also be affected by the Affordable Care Act, as there will be additional Medicare withholding taxes on wages. The portion of the hospital insurance tax which is payable by the employee under Medicare has increased from 1.45 percent to 2.35 percent. This affects those employees earning more than $200,000. This tax increase only affects the employees, as the portion paid by the employer remains at 1.45 percent.
It is wise to seek advice from an attorney if you own a small company. Find one who is familiar with tax laws, especially the Affordable Care Act.
About the Author:
Jeannie Monette loves writing reviews about insurance providers. For more details about Obamacare small business health insurance requirements or to find small business group medical insurance, please check out the MercadoInsuranceServices.net website now.
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