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and there is another provision in the bill that allows the feds to not only penalize an employer for not providing health insurance, but they can also penalize the employer for not providing the RIGHT health insurance. and guess who gets to make that decision, thats right the HHS secretary and the IRS. do you really think that even if an employer is providing the right health insurance that a vindictive presidents administration wouldnt use that provision to push his political enemies?
I do not think it is the Federal government that does the penalizing. If I am reading this correctly, it is the States that set the minimum insurance requirement for employees, and I assume are the ones enforcing it (from Small Business | HealthCare.gov):
Quote:
It depends--states vary on what they require insurers to cover in small employer plans. Contact your State Department of Insurance for more information about small employer coverage requirements in your state.
I do not think it is the Federal government that does the penalizing. If I am reading this correctly, it is the States that set the minimum insurance requirement for employees, and I assume are the ones enforcing it (from Small Business | HealthCare.gov):
Is there a provision I missed?
yes, the fact that the IRS is the one enforcing the health care law, and that the HHS is the one that sets the rules regarding the law.
Businesses can't just 1099 someone. There are certain requirements to be a 1099 employee.
Why can't they? They declare everyone a sub-contractor.
I worked for company that did that years ago.
They could give their employees a raise and let them take care of their own tax obligations. By being sub-contractors they have many deductions they can now claim.
Look at all the other costs a business can save. No more collecting state and federal income taxes. No more collecting and paying FICA and Medicare. No more paying unemployment insurance. No more paying for vacation and sick leave.
The would probably also save in how much they have to pay their accountant since the account's workload will be drastically reduced
Not to mention all the paperwork and other state and federal mandates.
Don't be fooled. Businesses will do what they have to do to stay alive.
Small business lives and dies by cash flow. Obamacare is saying you must, as a small business, get health insurance for your employees if you meet the employee count criteria or you will be taxed. If you use the gov't exchanges for that health insurance, you can receive tax credits up to 50%. However, what does that do for the small business during the months before that tax credit is provided? Do you know what is involved in getting health insurance coverage? You must have an administrator to be the facilitator or picking and managing that health insurance. You must change your reporting mechanisms for each paycheck, including taking out the employee portion and determining the employer portion of this health insurance. Also, you lose the ability to offer a less costly policy to your employees. You must, as mandated by HHS, provide an Obamacare approved plan. These plans they are suggesting and not cheap and most insurance policies today do not even cover the majority of what HHS is mandating they must cover. Oh and Obamacare does NOTHING to control costs. This means those premiums are free to go up and up and up.
So what are your options as a small business owner? Do you offer this costly insurance and hope that you have the cash flow to cover it until those credits kick in? Do you pay the tax, further hurting your bottom line? Many small businesses are having a hard time already. What do you think will happen when you mandate that they spend even more?
An article on the impact of Obamacare to small business...
I just talked to two small employers, they hire 5 people each. there still waiting to fully understand this law. arent we all! Both say they will cut back or sut there doors, doing the work themselves. They are NOT positive about Obama being re-elected.
As for medicare, I say its a ripoff, I dont want my money taking care of your grandpa. (noet: Im almost 60) If you cant afford it yourself, buy a casket. sounds mean but its how I think of ALL these goverment give- aways. Including foriegn aid.
Why can't they? They declare everyone a sub-contractor.
I worked for company that did that years ago.
They could give their employees a raise and let them take care of their own tax obligations. By being sub-contractors they have many deductions they can now claim.
Look at all the other costs a business can save. No more collecting state and federal income taxes. No more collecting and paying FICA and Medicare. No more paying unemployment insurance. No more paying for vacation and sick leave.
The would probably also save in how much they have to pay their accountant since the account's workload will be drastically reduced
Not to mention all the paperwork and other state and federal mandates.
Don't be fooled. Businesses will do what they have to do to stay alive.
The IRS has certain requirements to be considered an independent contractor. My understanding is you can tell the contractor the deadline for the work. But they can't tell him he must work 8-5 M-F or how to do it.
The IRS has certain requirements to be considered an independent contractor. My understanding is you can tell the contractor the deadline for the work. But they can't tell him he must work 8-5 M-F or how to do it.
This is true. You set out a set of deliverables and literally have a 'contract' with that person. They must deliver those things by a set date and will be paid a set amount of money for those deliverables. Of course, this is the most common type but there are a variety of contracts that can be used. Time and material is one. Firm fixed fee. Costs plus, etc, etc. The key takeaway here is that you have a contract between you and the contractor. It is an agreed upon arrangement by both parties on the terms and deliverables. As a business owner, you file a 1099 for reporting the compensation paid to that contractor.
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