I’ve been asked a number of times recently as to what affect the Obama health care law will have upon businesses. I see it having a number of effects.
A small employer with 50 or fewer employees will not have to provide health care coverage for its employees. However, after 2013, businesses larger than that will have to provide such coverage or face penalties. The penalties will apply to companies having at least one full-time employee who receives subsidized coverage in the health insurance exchange. Such penalties are currently set at $2,000 per full-time employee, however, the penalties are not calculated on the first 30 such workers.
Small businesses, with 25 or less employees, may qualify for a tax credit to help offset the cost of covering their employees. So long as average earnings of full-time workers at such companies is $50,000 or less, credits of up to 35% of the cost of premiums is available. After 2013, that credit increases to 50%.
For business questions you may have about the new health care act, do not hesitate contacting us at Schober Schober & Mitchell, S.C., at either of our two offices, New Berlin (262-785-1820) or Oconomowoc (262-569-8300).