Why Viva Health Blog
The Four Things about Obamacare that Most Impact your Business03.17.15 A lot of controversy surrounds the Affordable Care Act and its implications to business owners. Regardless of your political opinion, there are certainly going to be measurable impacts on the way a business owner has to handle its health insurance and its money. Below are the top four things about the ACA that will impact your business, and what they might mean for your bottom line.
  1. The Employer Mandate - By 2016, small businesses with 50 to 99 full time equivalent employees will need to start insuring their workers. For businesses with more than 100, 95% of their employees must be covered by 2016, and 70% must be covered in 2015. If an employer does not offer insurance, a $2,000 fee will be levied against the employer. If an employer offers insurance, but it isn’t affordable or doesn’t cover at least 60% of total healthcare costs, a $3,000 fee is levied. For more information about the employer mandate, visit http://obamacarefacts.com/obamacare-employer-mandate.php.
  2. If your business falls into a certain category, it could face increased taxes. The following types of businesses will be affected by tax increases: Medical device manufacturers (2.3% increase), indoor tanning services (10% increase), health insurers (roughly 2%), and brand name drug manufacturers (unknown). The bottom line here is that most businesses won’t feel the effects of these taxes directly, but the rise in cost for certain services or items that occur as a result of taxes on the business listed might warrant some belt tightening.
  3. Called the Home Sales Tax, a tax on investment income (3.8%) will be levied on unearned income. Despite its name, this tax targets both sales on homes as well as capital gains earnings. Real estate companies are going to be particularly affected, as well as businesses who earn a substantial portion of their income on capital gains.
  4. The Self-Employed – For the most part, those who are self-employed won’t directly experience any new taxes. However, if you, as a self-employed person, make over $200,000 per year or choose not to have health insurance, you’ll experience a 0.9% and 1% tax increase respectively.

The bottom line is that most employers aren’t going to experience the effects of Obamacare directly. New taxes and fees are fairly streamlined. But, the danger lies in increased costs passed on to consumers through taxed companies, and penalties for companies over 50 employees that fail to provide adequate health insurance. For more information about the Affordable Care Act, visit http://obamacarefacts.com/obamacare-taxes.php.