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TOPIC: "Health Care Law Confuses, Angers Some Small Businesses; ABC Offers Detailed Look at New Law's Impact on Small Business


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"Health Care Law Confuses, Angers Some Small Businesses; ABC Offers Detailed Look at New Law's Impact on Small Business

Read @ ABC News

Health Care Law Confuses, Angers Some Small Businesses

ABC Offers Detailed Look at New Law's Impact on Small Businesses


Health Care Law's Impact on Small Businesses

Tax Credit: Businesses with fewer than ten employees whose average annual wage is less than $25,000 are eligible for a tax credit that covers up to 35 percent of the premiums a small business pays. The credit is available for the 2010 tax year for both for-profit and non-profit organizations.

Even though businesses won't actually see the payoff until 2011, when they file their tax return, business owners like Burton say it helps them budget for the future.

The administration estimates that up to 4 million small businesses could qualify for the tax credit this year, totaling about $40 billion in relief.

The tax credit rate increases to 50 percent by 2014, and will be available for two years.

The credit decreases as the size and average wage of the company increases. For example, other small businesses, classified as companies with 25 employees or less whose average annual wage is less than $50,000, are also eligible, but a smaller portion of their costs will be covered. That percentage is determined on a sliding scale basis.

Insurance Exchanges: By 2014, the administration will set up American Health Benefit Exchanges, a marketplace where businesses with 100 employees or less, and individuals, can shop for coverage. The exchange will be designed as a place where people can compare various insurance policies and options.

States will have to offer the Small Business Health Options Program where small businesses will be able to buy insurance together in pools.

By 2017, businesses with more than 100 employees will be able to purchase coverage in the SHOP Exchange.

Exemption From Penalties: By 2014, all businesses will be required to provide health insurance to their employees, and will face penalties if they don't. But employers with 50 or fewer employees will be exempt from the penalties.

1099 Mandate: Under the Internal Revenue Service 1099 reporting requirement, businesses will have to identify any person or any entity to whom they have paid $600 or more for goods or merchandise in a year. The federal government will have authority to tax those transactions.

"The concern is not so much that small businesses will have to pay more but instead that it will be a reporting requirement nightmare, that the paperwork burden of having to file all of these new forms will be extensively burdensome to businesses," said Jennifer Tolbert, health policy analyst at Kaiser Family Foundation.

Read more about the provisions that went into effect, starting Sept. 23

Full article @ ABC News


Please share with your friends and family who may have small businesses.... They dont need to waste money on consultants on this one. It really is not rocket science.

-- Edited by Sanders on Monday 27th of September 2010 05:52:57 PM

Democracy needs defending - SOS Hillary Clinton, Sept 8, 2010
Democracy is more than just elections - SOS Hillary Clinton, Oct 28, 2010

Madam Secretary Blog at ForeignPolicy.com
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