Essay on Obamacare and Small Businesses

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Obamacare and Small Businesses Adverse Effects Obamacare seems to have a plethora of negative elements attached to it. When it comes to small businesses, Obamacare might potentially have an adverse effect on the employers and workers. However, at this time we cannot do anything for fellow citizens that are feeling the emotional and monetary distress that they’re enduring as a result of Obamacare. There is a possibility Obamacare will have a negative impact on small businesses. Attributable to the anticipation of Obamacare, small businesses have already started replacing full-time employees with part-time employees. In anticipation of Obamacare, employers need to decide what the most effective economic choice is for his or her business.…show more content…
Small businesses with more than 50 full-time employees with an average annual wage above 250,000 must provide health coverage to full time employees come 2015. This is sometimes called “The employer mandate”. (Obama Care Facts). Obamacare employer mandate could be a downfall for the most non progressive future for many businesses. Not only will businesses have a hard time flourishing, but the new requirement makes it more expensive for businesses to hire workers in the future along with reducing full-time employees to part-time employees. In anticipation of Obamacare, employers will need to decide what the most effective economic choice is for his or her business. The business will have to insure their employees and may qualify for a tax credit or pay a 2,000 penalty a year for each uninsured employee. Obamacare will give small businesses tax breaks and credits to cover small businesses cost increase. Whereas ninety six of employers won’t pay further taxes, there is an increase to the current Medicare Part A, paid by 3% of businesses and employees making over $200,000. There is also a requirement for employers with the equivalent of over 50 full-time employees to obtain health insurance for their workers or pay a penalty by 2015. Employers will have the option of providing health insurance coverage for all of their workers or paying a penalty (“Opposing employer mandate”). Employers that offer coverage must meet a minimum benefit and contribution requirement
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