Compliance with Obama care

Discussion in 'Business Operations' started by Duekster, Nov 17, 2012.

  1. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,783

    Please do, I would like to see a good analysis of the program.

    In the meantime, I'll be talking to my accountant over the winter and other professional finance services to see where we need to take the biz going forward.

    Biggest part for me is that we just started taking on employees, and now I have to figure it into the new business plan. As a business that doesn't push high volume and focuses on quality, it might make our already high end prices that much higher.

    I'm also like the original poster, we don't have to provide it, but we might loose workers due to needing to pay for it themselves. So ultimately, if your not raising prices to pay your employees more, then your raising prices to pay for providing health care.

    ...
     
  2. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    With the tax credit, If I start this in 2013, can claim up to 35% of the employee's cost which should be a push. They you get two years at 50% tax credit then done.

    This will give us 3 years to adjust and hopefully by then everyone will have gotten use to the price shock and we raise prices slowly over those 3 years. After that, it just becomes an expense.

    Has anyone taken advantage of the tax credit? I think the ones used pre-2014 do not count toward the limit of two.
     
  3. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,938

    ok, I'll probably post it the Monday after Thanksgiving. I figure anything next week is going to get buried.

    I hadn't thought about the angle that even if you're not required to provide insurance, it can still be an issue. Good call.
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    It will be an issue because most people are thinking they will get "free healthcare" and they will have to pay something or buy something. .

    I am not sure if my guys would qualify for the personal tax credits but if they do then I want to be able to advise them on that route too.

    I am looking at ways to be come leaner and meaner and I am going to need to have a heart to heart with the guys about productivity, health insurance and profit sharing. We are making money but if Obama care cost me directly or them directly it is going to mean making more money either way.
     
  5. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,063

    I'm looking at the profit sharing also... gotta motivate the employees to be efficient and productive/ proactive... maybe telling them they are leaving money on the table by wasting time... the leaner your operation is, the more available to pay profitsharing and better equipment
    Posted via Mobile Device
     
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    You and I likely should sit down and chat at some point in time.

    Here is the best thing I have found so far

    http://www.familiesusa.org/assets/pdfs/health-reform/Premium-Tax-Credits.pdf


    Some good info in here. Some things we have not even discussed yet.

    I will need to read it two or three times. It sounds like we could just make a payment to the employee as a Voucher and they buy the insurance on an exchange then get a tax credit.

    Not sure if we get a tax credit or deduction for the voucher to help transition.
     
  7. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    Now if you had more than 50 employees couldn't you just start another company doing the same thing and spit the employees? Or start multiple temp services of 50 employees to staff your company?
    Posted via Mobile Device
     
  8. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I thought of that but I think they aggrigate so be careful there.
     
  9. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    Aggrigate?
    Posted via Mobile Device
     
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    My bad... aggregate bad speel cheker :laugh:
     

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