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  #1  
Old 11-17-2012, 10:31 AM
Duekster Duekster is offline
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Compliance with Obama care

I happen to live in Texas which is not going to set up an exchange. I am likely exempt from buying insurance because of my size. However, It will hurt my employees if they have to buy it.

I am really concerned about what to do? What are some of your business management plans for a program in full force in just over 1 year?
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  #2  
Old 11-17-2012, 01:50 PM
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jrs.landscaping jrs.landscaping is online now
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Looking into it this winter and see what our options are. As business owners we've been put in a tough spot, some of us are not required to cover employees for insurance, but if those employees are uninsured they will be fined. A lot of seasonal companies are going to be hurt by losing qualified employees who will take on lower wage jobs that provide benefits. I'm curious to see how many companies follow Nissen down to the courthouse in the future?
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Old 11-17-2012, 02:48 PM
Duekster Duekster is offline
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I agree, I am small enough that I do not have to provide it. However the employees will have to buy coverage or work somewhere that does provide it.

I have no clue how much it is even going to cost. There are tax credits for small employers with less than 50 employees but I think you can only use them for 2 years then you are on your own. I wish I knew how much it is going to cost per employee so I can start raising prices slowly over 3 years to get where I need to be.

I typically use the CPI to justify cost increases to my business clients. They understand that very well. Right now I would be looking at around a 25% increase but I need to look at my labor vs revenue model a little closer this winter.

Last time I liked, Heath Insurance would be about 50% of my payroll. If I make them pay 1/2 of it then they lose 25% of their pay so they will want a raise so they can make ends meet.
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Old 11-17-2012, 03:48 PM
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Right now including myself into payroll we are a little over 30% of gross. I couldn't imagine hiking prices 50% of that to cover health insurance. Hopefully all of us with employees and even those without can weather this and keep the ship afloat.
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Old 11-17-2012, 06:02 PM
Duekster Duekster is offline
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Well I was looking at the website and it seems small employers less than 50 employees do not have to comply. The employees if they are low wage might get a tax credit to buy in the exchange. Not sure of the parameters at all. Very poor communication about the program to say the least.

BTW, when you say 30% of gross does that include burden too or just wages.
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Old 11-17-2012, 06:21 PM
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Everything included. We had one employee quit which lowered it before the winter season. Next Spring with adding a replacement employee or 2 we should be back over 40%. Like you said little to no communication regarding this whole issue, yet we only have one year to fall into compliance.... whatever that may entail.
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Old 11-17-2012, 08:13 PM
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Kelly's Landscaping Kelly's Landscaping is offline
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We used to think Libs were just dumb and incapable of seeing the consequences of their actions. But the ones that write laws like this aren't dumb they are just plain evil. This law is designed to fail they want it to and with it the health care industry.

The 600 dollar transaction F U for every time you spent that was too much and they back peddled on that and pretended they have no idea who even put it in the bill. But the mandate is the bills undoing. And this is what the penalties really look like.

"For firms which do not offer insurance any insurance, have more than 50 employees, and have at least one employee receiving insurance subsidies, they must pay a tax of $2000 per subsidized employee. The tax is applied to all of a firmís employees (after excluding the first 30), not just those that are subsidized. For example a firm with 51 employees would pay $42,000 in new annual taxes, and an additional $2,000 tax for every new hire.

For firms that do offer insurance, the penalty is the lesser of $2,000 for every employee (after exempting the first 30) or $3,000) for every employee receiving a subsidy."

Why would any one want to add that 51st employee or for that matter lets say you had 60 would you not cut 10 of them and save yourself 60k a year in fines. Then there's the mini screw job where even if you did offer your employees health care if their end of it was 9.5% or greater they could jump off your plan to an exchange and you get fined anyways.

As for the communication issue there is no issue at all with that the bill was passed 2 years ago and now that Obama has been reelected they are only now going to write it. And they are putting out hundreds of regulations a week now that he has won. That was the plan all along.

So big low profit companies will go to 29 hours a week and not pay the fines but the employees who were promised affordable healthcare will have to buy it or pay the 750 dollar a year fine for not having it. And of course that comes out of their IRS refund so they have no say or way to avoid it. So their reward for electing this clown is 25% pay cuts and a 750 dollar a year find and I'm sure they will all be happy with that.

Will I provide insurance hell NO there is very little money in this trade and that would put us out as it would all of you too. So I get to pay my personal 750 dollar fine but I will stay under 50 employees and I will avoid the real nasty one. Of course that fine will likely go to 5000 before you know it when they realize 750 isn't enough to force one to buy something they do not want.

The only real upside to this disaster is the real big boys in our trade the brickman's and tru greens and the likes of them now get killed with this insurance and they do not have a way to dodge it like the smaller companies. So the h2b workers and all their low wage guys that allow them to out bid small companies just went out the window as they will have to raise their prices to comply.
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  #8  
Old 11-18-2012, 08:05 AM
Duekster Duekster is offline
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Kelly,
Trying to keep this out of the political arena but I agree that there will be more unintended consequences than the bill writers intended.

I think I read seasonal workers do not count but that meant retail holiday hires, I suspect your right however even excluding H2B workers the big boys will now have to do something.

My concern is the guys are going to expect something and I feel obligated to figure out what they need to know.
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  #9  
Old 11-18-2012, 08:51 AM
PaperCutter PaperCutter is online now
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I have a friend of mine who works for a group benefits company in the DC area. He's writing an article for me about the details of what all ACA means for small businesses. You want me to post a link here when it's up?
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  #10  
Old 11-18-2012, 08:55 AM
Duekster Duekster is offline
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Quote:
Originally Posted by PaperCutter View Post
I have a friend of mine who works for a group benefits company in the DC area. He's writing an article for me about the details of what all ACA means for small businesses. You want me to post a link here when it's up?
Absolutely. It sounds like many of us do not have to worry about it on the business level but you never know. And we need to help our employees too.
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