Obama’s Affordable Care Act has been one of the more polarizing topics in our nation’s history. While it may seem that everyone has an opinion, most people are still unclear as to what it actually means. ACA is a pretty complicated bill that will seemingly change the way the nation functions (for better or worse depending on who you ask). The reality is that just about everyone will be affect by the bill, so it’s best to start researching how it will affect you if you haven’t already. Company.com (the social network for business) puts a strong focus on helping small businesses communicate with others and grow. We did our own, unbiased research into the topic to help those who may either be confused or unsure of where to go from here.
Not every small business is in the same boat when it comes to ACA. There are specific rules that basically split up small businesses into different tiers. The number of employees you have and their salary determine the tax break incentives your business receives. For instance:
- If employers employ less than 25 employees and the average wage of employees is less than $50,000, tax credits are available.
Something to keep in mind is that we are closing in on a presidential election. There is a lot of political propaganda being thrown to try and influence voters. Our advice would be to look at the law and focus on what your company needs right now. This page is a great breakdown of all the real legislation (not hearsay and speculation about the effect on the economy) - Top Things Small Businesses Should Know About ACA
The biggest mistake you can make is banking on the law getting repealed or ignoring it all together. It is not clear what ultimate effect it will have on the economy and the success of small businesses. While some are claiming it will slow hiring and stall economic growth: Why the health care ruling will hurt business others believe it will help small businesses by making the focus more on long-term goals: Why the health care ruling will help business
Analyze your small business (# of employees, avg. salary) as well as your plans for expansion in the future. The reality is that some will gain and lose more than others depending on the structure of the company. You are sure to lose if you don’t take ACA into consideration. Be sure to take the time to research what kind breaks are available and how they fit into your long-term goals. Don’t ignore this new legislation when planning your company’s future.