Why Is It So Difficult?

1121 Words Apr 29th, 2016 5 Pages
Conclusion
Many of the new requirements seem unfair and confusing, as well as downright impossible for the small business owner to navigate due to conflicting advice on the internet. Why is it so difficult, and seemingly against regulations, for the small S corporation to provide additional assistance to the employees, including the shareholders? It seems that as a result of ACA, many employers saw that it made more sense to allow employees to acquire insurance through the marketplace. A win-win since the employee can take advantage of tax credits, and the company saves money. I would venture a guess, that the IRS and DOL would rather the small employer carry the burden of insurance costs through group health plans; which means removing incentives to reimbursement plans through the marketplace. (Weiss, 2014) Instead agencies have succeeded in creating an additional after-tax expense; which is borne by the employees of small businesses. Not so affordable and not really fair either.
As the marketplace seems to be here to stay; I would recommend that the legislature pass a bill that will provide small business S corporation marketplace reform relief . The tax credits available to businesses that do provide group plans are complicated, and are difficult to qualify for. Additionally, the credits phase out over time and are a small portion of the sometimes overwhelming costs. Few employers are benefited from the credits to the point that a group plan makes sense. I…
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