(866) 480-2611

Affordable Care Act: Impact on Your Business

Health care and labor in the United States is a complex web of regulations and policies. For many businesses, particularly small businesses, many of these laws may appear too complicated and can make owners and managers quite alarmed about new costs to their businesses. Its best that small business owners and managers understand how certain regulations affect them and what they can do to minimize their costs as a result of these regulations. Here, we will see how the Affordable Care Act affects small businesses and what a small business owner or manager can do about it.

What Is the Affordable Care Act?

The Affordable Care Act (ACA) is a health care reform law introduced by President Barack Obama and brought to the floor of the House of Representatives by Representative Charlie Rangel (New York-15). The ACA includes numerous reforms that helps end pre-existing condition exclusions on health care plans, removes insurance barriers by setting up health exchanges, and increases the scope of preventative care on health care plans. Essentially, the ACA tries to lower the amount of uninsured Americans by giving them opportunities to enroll in health care plans. With more people on health care plans, premiums for all insurance recipients can go down and coverage can increase. In the end, more people would, in theory, have health care, which would promote better public health results and lower the financial burden of individuals in relation to their health care needs.

What Does the ACA Do To Businesses?

The ACA has different regulations that are applied to businesses. The most important policy that is supposed to help increase the amount of American citizens have health insurance is the Employer Mandate. Although the mandate requirement is being pushed back, the mandate will force businesses with more than 50 full-time equivalent (FTE) employees on their payroll to provide a health insurance plan for all of those FTE workers. If the business does not provide health insurance, they need to pay a penalty fee annually with their business taxes. This fee is about $2,000 per employee after the first 30 employees. So, if a business has 75 FTE workers but does not offer insurance, they need to pay a penalty of $2,000 per the 45 FTE employees over the first 30 FTE employees, or $90,000 annually.

What Does That Mean For Small Businesses?

The definition of a small business may be relative to many owners and managers, but under this law, a small business is under 50 employees. If a small business has under 50 employees, they are exempt from the Employer Mandate and the penalty fee under the ACA. Still, many small businesses, in terms of their operating budget, can have over 50 FTE employees, meaning the ACA penalties or providing health insurance can be very detrimental to these business budgets.

What Many Small Businesses Are Facing

The definition of a small businesses under the ACA makes many actual small business owners and managers face grim choices. To avoid an annual penalty or the costly institutionalization of having an employer health care plan, many owners and managers considering drastic changes to their business structure. Many owners and managers have been open to cutting hours so that the amount of FTE workers employed on the payroll are reduced. Some businesses may even fire workers outright to completely reduce their entire worker head count.

How the Advance Funds Network Can Help

The Advance Funds Network (AFN) is a financial firm that provides lines of credit to small businesses. What makes AFN lines of credit different is that they offer large lines of credit to businesses, but the business will only pay for the credit they use. In addition, the payment approaches vary with AFN, such as fixed payments, percentage of sales payment, or a hybrid moment option. AFN provides lines of credit for any business that can meet several application requirements, such as having over $10,000 per month in sales and having a minimum of $1,000 in their business bank account with at least five deposits per month. Contract AFN today to see how they can help a small business meet the needs of the ACA, whether the business will invest in a health plan or pay the penalty fee.

Sources:
-http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h.r.03590:
-http://www.hhs.gov/healthcare/rights/
-http://obamacarefacts.com/obamacare-employer-mandate.php
-http://online.wsj.com/news/articles/SB10001424052702304049904579517941827283028

Nurturing Business, Cultivating Hope

GET STARTED
Putting Our Clients First Since 2008.
Become A Partner
Partner with us to reach potential merchants using our patented technology on the Advance Funds Network platform.
464 Kings Highway Brooklyn, NY 11223
1633 Rt 35N Unit 4 Oakhurst, NJ 07755
2031 Harrison St, Hollywood, FL 33020
5858 Dryden Place Carlsbad, CA 92008 Suite 238
2967 Dundas St. W. #220D Toronto, ON M6P 1Z2
(866) 480-2611
sales@afnllc.com
Important Information About Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
USA
Canada
Coming
Soon
Coming
Soon
© Advance Funds Network 2023. All rights reserved.
crossmenuchevron-down