12September 2009
Heath care reform has some real problems for small business owners. With health care reform still undecided, it’s anyone’s guess on how it will turn out. One thing is certain though and that is that no one is approaching health care reform with small business in mind.
Under one proposal a small business that employs 25 employees or more would have to insure all employees or pay a per employee penalty. One proposal excludes the first 25 employees and, recommends a $750 penalty for the 26th employee. The first 25 employees would remain exempt.
Some small business owners would like to see a tax on premium health insurance plans that give large businesses an advantage in hiring employees. Small business owners believe that it would level the playing field. Taxing premium health insurance plans would also help pay for the cost of health care reform.
Unfortunately other proposed tax increases with surely hurt small business owners. Although President Obama promises not to raise taxes, current tax proposals will hurt small business owner’s that file as Sub-Chapter S Corporations. Whatever your current situation is, make sure you contact your representative to let them know how you feel about Health Care Reform and how it will affect your business.