Health Care Act: What Small Biz Owners Should Know Before October 1; Adam Shay CPA Outlines How Best to Prepare for Upcoming Changes
Wilmington, NC (PRWEB) July 30, 2013 -- The bill was officially signed into law more than three years ago, but major changes brought about by the Affordable Care Act will begin taking effect starting this October. While most discussions seem to have focused on the more extreme implications affecting large companies, many small business owners are left wondering what changes they should expect, if any – and the clock is ticking for them to find out.
North Carolina-based CPA Adam Shay says small business owners need explanations of the act as it relates to them. Otherwise, they’ll be wading through long lists of details specific to bigger firms. In an effort to end the confusion, Shay has developed easy to understand 5-part outlines covering not only the facts of the Health Care Act, but steps small business owners can take before Oct. 1 to use the act to their advantage.
“As a small business owner myself, I quickly realized a void in the countless lists, overviews and summaries of the Health Care Act floating around,” Shay said. “Of course, I am thinking of the act from a tax standpoint and I do believe there is a short and simple way to explain these implications to owners. I also think having this knowledge will bring them one step closer to not only a smooth transition come October, but will put them one step ahead of their competitors.”
Health Care Act for Small Business Owners:
1) Many small businesses will be too small (< 50 Employees) to be penalized for not offering health care to their employees.
2) If you have fewer than 25 employees and average pay is less than $50,000, you may receive a tax credit of up to 35% of your insurance costs.
3) The Marketplaces and Exchanges will open October 1, 2013. You can potentially purchase company plans – and your employees could potentially purchase their own plans – via the exchange.
4) If your employees purchase their own plans, they may have to report who employs them, as well as their business tax I.D. number (which you typically provide on a W2). All individuals will be required to have insurance (or face a penalty on their 2012 tax return) starting in 2014.
5) Those that get educated and work with trusted professionals will come out ahead of those that wait to see how everything plays out after the fact.
Steps to Take Advantage of the Act:
1) Understand the implications for your business before your competitors do. Stay in front of the curve. If you have a smaller business, there generally is not much to fear or expect in increased costs.
2) Educate your employees on the implications so that you can reduce their stress and fears.
3) Begin to map out your strategy and game plan for when the exchanges open on October 1, 2013. Are you going to investigate offering coverage for your employees? Will such an option lower your (the business owner's) personal health insurance and health care costs?
4) Use this time to reevaluate overall compensation and benefits offered to your employees. Position yourself to an advantage against undereducated competitors.
5) Plan for how the health care act could influence growth, customer spending, and other overall factors in the future.
“There’s no doubt that the Health Care Act can significantly impact some small businesses,” Shay said. “If it does, a proactive, organized approach can make the whole process much easier to navigate for both owners and their employees. The time to start is now.”
Claire Dillard, Bon's Eye Marketing, 910-508-6346, [email protected]
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