As a small business owner, you probably wondering how the ACA impact your business. Small business owners need to understand their options under the ACA. Savvy employers take advantage of the ACA better to offer, affordable employee health benefits.
There are several ways for small businesses that are not needed, health offer under the ACA, but want for employee recruitment and retention purposes
Tip: .. This article is an excerpt from our new e-book "Affordable Care Act 101." Download here the free guide
What is the Small Business Health Care Tax Credit?
Since 2010, tax credits have qualified small business user, offering a group health insurance. In 2014, the tax credit to 50% of your contribution worth up to eligible premium expenses of employees (up to 35% for tax-exempt employers). The tax credit is highest for small businesses with less than ten employees that are paid an average of $ 25,000 or less. The smaller the company, the higher the credit
for small businesses to get healthcare tax credit in question, you must :.
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employ fewer than 25 full-time equivalent (FTE) employees and
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pay an average wage of less than $ 50,000 per year per employee
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pay at least half (50%) of insurance premiums the health of employees (only) full-time employees and
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your state to purchase health insurance plan by Small Business Health Options Program (SHOP) marketplace; unless there are no plans SHOP in your region offered.
The credit for two consecutive tax years is to legitimate employer.
What is the SHOP marketplace?
In the context of health insurance marketplaces of the ACA, there is an option for small businesses, the SHOP marketplace called. This is a new way for small businesses with fewer than 50 employees (or less than 100 in some states) to acquire a traditional group health insurance.
As already mentioned, if you want to access the small business tax credits that you need to buy a plan SHOP (unless there are no plans SHOP in your region are available). However, if your small business has not been able to afford for group health insurance in the past, or to qualify, the SHOP will not offer much to change this.
How the ACA affects the cost of small business health insurance?
Small businesses that offer group health insurance are likely to see because of the ACA premium increases. Why? New ACA taxes and charges are passed on from insurance carriers for companies and their employees, and there is a new plan and reporting requirements that affect costs.
In fact, the Centers for Medicare & Medicaid Services (CMS) reports that 11 million small business employees (65%) is health insurance premiums as a result of interest rate increases Affordable Care Act (ACA).
But it is not to see the whole ACA. The cost of traditional group health insurance has the last decade to climb over, so that many small businesses to be constantly falling coverage or increasingly shift costs to employees.
According to a national Small Business Association 2014 survey, small business health insurance costs are 91% of small businesses since 09 almost doubled increases in their health plan at its recent renewal insurance coverage.
It is no surprise that less than half of all small businesses to traditional group health insurance offer employees; it no longer works for small businesses or their employees.
Do I have any options other health insurance?
Yes. Given the ACA changes and opportunities, the best option to provide health insurance for small businesses, the individual health insurance and a premium refund program.
This approach your company is a health supplement staff on individual health insurance spending -. rather than a group health insurance purchase
your business is health supplement amounts, so you have full control over the cost of health benefits. Unlike group health insurance, there is no minimum contribution amounts and no minimum conditions.
employees use their health allowance to purchase an individual health plan of their choice and the right ones, the premium can access tax credits.
How can employers help employees with health insurance costs
can provide employers provide their employees with a value of health benefits available, while all the benefits and flexibility that individual health insurance provide for:
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Not with traditional job-based health insurance. Only provides job-based health insurance disqualified employees (and often their families) of premium tax credits
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a premium refund plan to implement an employee for individual health insurance premiums
to reimburse
questions about health insurance options for small employers? Leave a comment below .
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