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If you are a small business, are you ready for the latest requirements in Obamacare? If you haven’t heard, starting on January 1, 2016, businesses with 50 to 100 employees will be required to offer insurance for their employees. According to the Affordable Care Act, if employers fail to provide affordable health coverage to their employees in the upcoming year, businesses will face a tax penalty (which can result in up to thousands of dollars).
I thought a business with 50 employees was considered small?
Last year, businesses with less than 100 employees was still considered small and wasn’t required to offer insurance to full-time employees, but revisions to the Affordable Care Act lowered the number to 50 employees or more. While this may be beneficial to hardworking employees, it’s a bit trickier for small businesses.
I was making plans to expand my business, now I don’t know if I can or should
For most small businesses, expansion means success. However, with expansion comes more employees and with more employees comes required insurance benefits. While many small businesses care for their employees and want to offer full-time work for all who qualify, some employers may need to draw the line on how many full-time employees can work for the business (full-time is at least 30 hours per week).
Sometimes I hire seasonal employees, do I have to offer benefits to them?
If you own a business that requires more employees during a certain time of year, such as the holidays or during the summer months, you are not required to offer health insurance unless you staff over 50 full-time employees for 120 days or more.
Is there a way to get around the new changes of Obamacare?
There’s no way to get around the Affordable Care Act and it’s not worth trying or the risk. Some businesses try to split into separate entities (with less than 50 full-time employees). This won’t save you any money in the long run because Obamacare treats related companies as one. If it’s more time you need, the federal government is giving businesses (who have all of a sudden become “large”) until April 1, 2016 to comply to the new changes.
I still have no idea what I’m going to do!
Most small businesses will agree that the Affordable Care Act can be overwhelming and confusing, particularly if you don’t have a human resources department to take care of all of the new changes or simplifying the process for you. Take advantage of the extension, but don’t wait until the last minute.
If you’re struggling to wrap your mind around the changes, consider contacting your local or state chamber of commerce, hire an employee benefits consultant, or speak with a licensed insurance broker who can help you find the right health plan that will be best suited for your business.
Even if you feel like the Affordable Care Act has set you back a bit as a business, don’t give up on your dreams of running a business; celebrate your success!