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.
Firstly, nearly all employers are required to give notice to their employees informing them of certain details regarding their coverage. This notice was supposed to be given by October 1, 2013. Among other details, the employee must be informed that a new insurance market exists for coverage and that they may be eligible for a tax credit if they buy their coverage through this market.
Smaller companies can also qualify for tax credits if they have fewer than twenty-five full-time employees. To be eligible for this tax credit, the company must pay at least half of the cost of a single coverage plan for each of their full-time employees. These employees must be workers earning less than $50,000 a year.
In addition, when purchasing a company, you should consider the possibility that there may be post-closing liability in the transaction. To protect yourself, ensure that all documents in the transaction contain appropriate representations for each party. Make sure that any responsibility for penalties under the Affordable Care Act is allocated appropriately.
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.
Firstly, nearly all employers are required to give notice to their employees informing them of certain details regarding their coverage. This notice was supposed to be given by October 1, 2013. Among other details, the employee must be informed that a new insurance market exists for coverage and that they may be eligible for a tax credit if they buy their coverage through this market.
Smaller companies can also qualify for tax credits if they have fewer than twenty-five full-time employees. To be eligible for this tax credit, the company must pay at least half of the cost of a single coverage plan for each of their full-time employees. These employees must be workers earning less than $50,000 a year.
In addition, when purchasing a company, you should consider the possibility that there may be post-closing liability in the transaction. To protect yourself, ensure that all documents in the transaction contain appropriate representations for each party. Make sure that any responsibility for penalties under the Affordable Care Act is allocated appropriately.
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 additional information about Obamacare small business health insurance requirements or to find small business group medical insurance, please check out the MercadoInsuranceServices.net site now.
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