April 30th, 2010 – Health reform will have an effect on every American. Small businesses, in particular, will feel the effect of the Health Reform law; otherwise known as the Patient Protection and Affordable Care Act (PPACA).
While many small business owners are concerned about health reform, not all the changes will be bad for them. In 2011, small business employers that establish employee wellness programs may become eligible for federal grant money.
Last week we told readers about the new 2010 tax credit for small groups with fewer than 25 employees. That tax credit is expected to help as many as 4 million small businesses across America and thousands right here in Colorado. Follow this link for more details on that nice small business tax credit.
On the other hand, if you are a small business with more than 50 employees you very well may be subject to a tax penalty.
Employers with more than 50 employees that don’t offer health insurance coverage and have at least one employee eligible for the premium tax credit may have to pay $2,000 per full time employee, after the first 3o employees.
Employers with more than 50 employees that offer health insurance coverage and have at least one employee eligible for the premium tax credit may have to pay the lessor of $3,000 per full time employee receiving the tax credit or $750 for each full time employee.
Small businesses with fewer than 50 employes are supposed to be exempt from these penalties.
Small businesses that offer health insurance and have employees that make less than 400% of the federal poverty level may be required to offer employees a voucher for employees to buy health insurance through state run exchanges.