Beginning January 1, 2014 your employer must provide medical insurance! This will obviously not be free to you and it will be taken out of your paycheck. You do have the option to withdraw from your employers offered insurance plan. If you choose not to participate then you will be at fault and penalized with a tax fee. However, if you do not have insurance and your employer did not provide you an insurance option then you will not be penalized but it will be them that is fined. SEE BELOW: ObamaCare Watch The Employer Mandate ObamaCare’s employer mandate is among the new laws most anti-growth provisions. When implemented, it will force most American businesses to offer government-approved health insurance to their employees or else pay new federal taxes for not doing so. This costly new requirement will make it more expensive for businesses to hire workers in the future. Consequently, it will destroy jobs, and many firms are likely to slow down on hiring in anticipation of its implementation. “Free-Rider” Provision ObamaCare does not impose a straight-forward requirement that employers offer health insurance to workers. Proponents of the new law wanted to avoid the charge that the new law was directly imposing new costs on American business. So, instead, they created a back-door mandate, what they call the “free-rider” provision. If a business with at least 50 workers has a full-time employee who is getting federally-subsided insurance through an ”exchange,” then that employer must pay a penalty for failing to offer that worker acceptable insurance on the job. (Workers that are offered qualified coverage by an employer are ineligible for the new insurance subsidies provided in the exchanges.) The tax is scheduled to begin in 2014 and the Congressional Budget Office estimates it will bring in approximately $10 billion in annual revenue once it’s fully implemented. Penalties For Failure To Insure For businesses 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 firm’s 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 businesses 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. The National Federation of Independent Business has a clear and informative table which examines the taxes assessed under different scenarios here.
Posted on: Tue, 13 Aug 2013 21:02:51 +0000
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