Small business owners like you are probably already feeling the impact of Obamacare in some pretty positive ways.
From lower health insurance rates to healthier employees, the Affordable Care Act is creating a better work environment for millions of small business owners across the country.
Here are just a few ways Obamacare is impacting small business owners like you:
Obamacare and Small Business
Also known as the Affordable Care Act, Obamacare went into effect in March of 2014, which means it is still a relatively new healthcare reality.
As far as the healthcare exchanges for individuals are concerned, the Centers for Medicare Services reports that nearly 7.3 million Americans are already enrolled in Obamacare.
As the following article shows, by enrolling in the Affordable Care Act, more Americans are “avoiding lapses in health insurance coverage” by following a dedicated enrollment schedule.
With that said, it’s still too soon to tell how many of the 7.3 million work for small businesses or own small businesses with employees who are now insured under Obamacare.
If your small business is on the fence about taking advantage of the next enrollment period, there are some unique benefits that could change your mind.
Healthcare Tax Credits
It’s probably safe to say that your small business feels the financial pinch every time tax season rolls around. Well, Obamacare can help your business save money on taxes with the small business health care tax credit.
For small businesses with 25 or fewer full-time employees that make less than $50,000 a year, there are government tax-exemption credits available. These credits help small business owners save a large percentage on the yearly taxes.
As long as you meet the tax credit criteria specified by the IRS, your business can actually reduce its taxes by enlisting in Obamacare.
Just like there are healthcare exchanges for individuals under the Affordable Care Act, there are also exchanges for business both large and small.
Known as SHOP exchanges, these healthcare marketplaces allow your small business to shop for healthcare plans for your employees and compare rates through one convenient website.
With SHOP exchanges, your small business can negotiate better health insurance rates by taking advantage of one-stop shop bargaining.
In other words, SHOP exchanges generate an environment where insurance providers shop for you as opposed to the other way around. This means your business will receive the most competitive healthcare rates available.
Disadvantages of the Affordable Care Act
As with anything in life, there are always cons that follow the pros and such is the case with Obamacare.
One of the disadvantages of the Affordable Care Act is the upcoming employer mandate, which goes into effect at the end of the 2015 enrollment year.
The employer mandate requires small businesses with 50 to 100 full-time employees to provide health insurance to all employees by 2016.
If businesses neglect to meet these mandate criteria, a mandatory employer shared responsibility payment will be deducted from the business’s federal tax return each year. Depending on the number of workers you employ, this could put a serious strain on your finances.
From SHOP exchanges to tax credits, it’s easy to see that Obamacare really is impacting the world of small business.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including health insurance and small business.