How Does The Supreme Court Ruling On The Affordable Care Act Affect Small Business Owners?
Dan Levenson July 14, 2015
On June 25, 2015, The Supreme Court of the United States ruled that the Affordable Care Act is constitutional, and that it will continue until further notice. There are many effects on small business that come both from this ruling and from the Affordable Care Act itself.
Earlier in its existence, the Affordable Care Act faced stiff contention from many politicians and was under threat. Many businesses have considered it to be challenging, if not downright problematic. Despite it all, the Affordable Care Act is here to stay.
Fortunately, as a small business owner, you can adapt to this with relative ease. The Affordable Care Act is reasonably simple to understand if you pay attention to the most salient parts of it for your situation as a small business owner.
Here are a few important facts about the Affordable Care Act to keep in mind:
Most Regulations Do Not Apply To Businesses
For the most part, the Affordable Care Act is not concerned with business. The effects on small business are thus fairly minor, which can be a relief if you have been fretting over potential consequences.
The most relevant aspects of the Affordable Care Act involve when you must purchase health insurance for your employees and when you have the option to do so. Since there may be tax credits involved in making this purchase—and it is most likely tax-deductible as a business expense—it is in your best interests to offer health insurance to your employees if you can. The Affordable Care Act merely makes this a more accessible benefit you can provide.
In Many Cases, You Must Offer Coverage
Larger businesses (which are defined within the Affordable Care Act as having more than 50 employees) must provide health insurance coverage for each full-time employee. Even if you have part-time employees but still fit the criteria of having 50 employees or more, you still have to provide every full-time employee with health insurance.
While you may not think having 50 or so employees makes you a “large business,” the Supreme Court’s support of the Affordable Care Act requires you to operate within its bounds.
If you choose not to provide health insurance to your employees who work full-time, you will be expected to pay an additional fee with your taxes per employee. This started in 2015, so your 2016 taxes will be affected if you choose to ignore this regulation.
Fortunately, the marketplace for insurance coverage has also been rendered more affordable on the whole, which may actually make your costs more reasonable for group health insurance.
The Smallest Companies Can Still Help Their Employees
No matter how small your company is, you can still offer insurance benefits to your employees thanks to the Affordable Care Act. If you have less than 25 full-time employees, you can use the marketplace in the same way as larger businesses can to buy insurance coverage with subsidies.
This is both an advantage to your bottom line and a substantial perk to your employees by providing care to their families and reducing their tax burden.
The Affordable Care Act has changed the landscape of health insurance in the United States, especially with the Supreme Court now affirming its continuation. As a small business owner, you can take advantage of these opportunities to provide healthcare coverage for your employees without breaking the bank.