Since the discussion commenced on our government overhauling the health care system in this country a few years ago, there have been fewer hot-button issues so loudly debated as the Affordable Care Act. Quickly dubbed “Obamacare,” the sweeping law enacted has had—and will continue to have—far reaching effects on our society as a whole.
While FranNet isn’t here to enter the debate over the pros and cons of our new health care reality, we do want future business owners to be informed. As with many other controversial changes in the way we do business in America, how people feel about the Affordable Care Act varies quite widely. And, as you might suspect, their answers are completely dependent upon how the new law has affected their own world view. Keep this in mind as we go on a fact-finding mission…
Perhaps the most definitive guide to the Affordable Care Act’s effect on business comes from a reliable, and certainly not biased, website of the Small Business Administration. In addition to just reading through the material, the SBA also offers weekly webinars on the subject—which we highly recommend. As an employer, you must provide some form of health insurance coverage to your full-time employees, or face a tax penalty. This is known as the “Employer Mandate”—however the “phase-in” period for following through with the requirement has now been postponed until 2015.
So how does it affect the different kinds of small businesses? First and foremost, it depends on how many employees you have as the business owner. There are three participation level cutoffs for the provision, coming at 0-25 employees, 26-50 employees and those businesses with more than 50 employees. It’s those critical thresholds of employee numbers where a business owner must decide if the additional employees on their payroll is a benefit when one must potentially increase their exposure for the mandated health insurance. It’s certainly a question requiring careful consideration.
Whether or not the Affordable Care Act will raise the cost of doing business in the entrepreneurial world, keep in mind that there are new government tax credits being offered to small business owners in order to offset potential cost impact. The law was designed to balance a critical need with the operating cost of running a business—certainly not an easy task under any circumstances. And while the debate about the cost-benefit analysis of Obamacare on small businesses has been loud and pronounced, our advice is the same as always—get as many of the facts, not opinions, as possible in order to make informed decisions about your own future as a business owner.
The Affordable Care Act is a sweeping reform of the way this country has handled the health care industry over the past three decades. Perhaps it was due for an overhaul. Our position remains that we want all businesses to be treated fairly and equally. We don’t want to see the growth of the economy and small business stifled by any unfair trade practices.
Do you feel that you’re ready to get started? If this article has inspired you to investigate a franchise opportunity, perhaps it’s time for a free consultation with a qualified and experienced franchise consultant. As it turns out, FranNet is just the place! As a franchise consultant company with a great track record of assisting individuals on their path to business ownership, make arrangements to speak with one of our representatives today.