Health Care Reform
How Does the New Healthcare Reform Affect My Business?
The recent pass of the healthcare bill signed March 23, 2010 has certainly raised some serious questions for the future of both large and small businesses. Though many details are not fully clarified in the bill, we have some indication of regulations specified by congress that are already beginning to take place.
Pay1’s system is designed to help you understand the needs of your business and how to best meet the requirements of the new act.
SMALL BUSINESS HEALTHCARE TAX CREDIT
From 2010 to 2013
- Small to mid-sized businesses (SMBs) with up to 10 employees and an annual payroll of less than $25,000 are eligible to receive full credit if the employer contributes at least half of the total premium.
- Small to mid-sized businesses (SMBs) with fewer than 25 employees, and an annual payroll of less than $50,000 that purchase health insurance coverage for their employees will receive a federal tax credit of up to 35% of employer contributions.
- Tax-exempt SMBs meeting the requirements are eligible for up to 25% of the employer’s contribution toward health coverage premiums.
EMPLOYER MANDATES FOR HEALTHCARE COVERAGE
From January 01, 2014
- An employer with 50+ employees that does not provide health care coverage will be assessed a fee of $2,000 per full-time employee (after the first 30 employees ; employees #31 – 50+)
- Employers who impose a waiting period before employees may enroll in a health care coverage option will be penalized $400 for any full-time employee in a 30-60 day waiting period, and $600 for any full-time employee in a 60-90 day waiting period.
- Employers with more than 200 employees must provide health insurance coverage. Employees are allowed to opt out of said coverage.
From 2010 to January 1, 2014
The Healthcare Reform Act allows employers or insurers to be reimbursed up to 80% of retiree claims between $15,000 and $90,000. Employers providing coverage for retirees 55+ who are not eligible for Medicare are eligible for this reimbursement.