How Will the Affordable Care Act Affect my Business?

Now that the Supreme Court has upheld most of the provisions of the Affordable Care Act (ACA), businesses should be prepared to meet ACA requirements when they go into full effect in 2014. But with all the rumors and misinformation out there, how can you begin to estimate the actual effect of the legislation on your business and your employees?

How the law affects you will depend in large part on the size of your business. Large businesses with many low-wage employees may face a substantial tax penalty if they do not provide health insurance options to their employees. On the other hand, businesses with fewer than 50 employees will not be subject to new employer responsibility policies, and will not have to pay an additional tax assessment if their employees have to get health insurance and tax subsides through an Affordable Insurance Exchange.

Employers with up to 25 employees who pay average annual wages below $50,000 and provide health insurance may already qualify for a small business tax credit of up to 35 percent to help offset the costs of providing health insurance. In 2014, that tax credit goes up to 50 percent. Also beginning in 2014, businesses with fewer than 100 employees may shop for insurance at an Affordable Insurance Exchange in order to get health insurance for their employees at prices commensurate with those usually offered only to large businesses with greater purchasing power.

Corporate taxation attorneys with experience dealing with these issues can help you figure out which path makes the most fiscal sense for your company — providing health insurance or paying the tax assessment — as well as whether you qualify for any health insurance-related tax credits.