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Um, YES. The cost of their insurance. To a small business that can be the difference between profit and loss. That's why they don't offer insurance.
Note that the penalty is less than the cost of insurance and IT ALONE will result in restaurants becomming unprofitable. How do you expect them to pay for insurance and stay in business? Raise prices until people refuse to eat there?
If I owned a restaurant right now, I'd cut all of my employees back to less than 30 hours per week and hire more employees to avoid both the cost of insurance and the penalty. Small businesses are not in position to pay for benefits for their employees. Not if they want to stay in business. I predict there simply will be no full time jobs with these businesses in the future. Cutting hours will result in people being LESS likely to afford insurance. But, on the bright side, lots of low paying 29 hour a week jobs will be out there for the taking. Of course, you can make more on unemployment...
That way they can dump their employees onto Medicaid so we all get to pay for their insurance.
Google "externalizing costs". Its capitalisms dirty little secret.
So let me understand this. Applebees pays minimum wage. Most likely these employees are apart of the 47% you people continue to bytch about, their probably already recieving subsidize care thanks to the Tax Payers, receiving Medicaid Thanks to the Tax Payers, or driving up health care cose by going to the emergency rooms Thanks to the tax payers. Soooo Why are you bytching now? Because these Greedy employers want to continue to shift the Health Care cost to the tax payers?
Um, YES. The cost of their insurance. To a small business that can be the difference between profit and loss. That's why they don't offer insurance.
Note that the penalty is less than the cost of insurance and IT ALONE will result in restaurants becomming unprofitable. How do you expect them to pay for insurance and stay in business? Raise prices until people refuse to eat there?
If I owned a restaurant right now, I'd cut all of my employees back to less than 30 hours per week and hire more employees to avoid both the cost of insurance and the penalty. Small businesses are not in position to pay for benefits for their employees. Not if they want to stay in business. I predict there simply will be no full time jobs with these businesses in the future. Cutting hours will result in people being LESS likely to afford insurance. But, on the bright side, lots of low paying 29 hour a week jobs will be out there for the taking. Of course, you can make more on unemployment...
Sooo what you are saying is that the Tax Payers should continue to pick up the tab for these employees Medical care? If they do not currently have health insurance, who do you think is paying for their care?
Let me give an another example going back decades of what employers have done to eliminate benefits for their workers in the name of profit making. Not low end jobs, but the wonderful world of IT. Going back to the middle to late 80s, full time tech jobs started disappearing and the world of the Consultant, aka, "Independent Contactor", came into being. Instead of adding a full time employee to the staff, they would hire a Contractor, sometimes extending that contactor years on end. Why did they do this especially if they were on board for long periods of time? They not have to give an Independent Contractor ANY benfeits AT ALL. So although they paid them a bit higher wage, in the end, not paying benefits worked out to their advantage.
Once they saw how much money they could save, what did they do next in this field? They came upon an even better plan. OFFSHORING. Now, they could not only save money by not paying out benefits, they could pay a foreign third world country employee dirt cheap wages. They got the best of both worlds. Who ever heard of Obamacare in the 1980s or 1990s? What these CEO's are doing now is nothing new. All they want is more and more money for THEMSELVES. Think these millionaires, and billionaires, want to pay more TAXES? They don't even want to pay a living wage, as in India wages. They don't want to pay ANY benefits, PERIOD.
Anyone remember the movie, Network, and employees screaming out their windows, "I am as MAD as Hell, and I am NOT going to take it anymore!" Is that what we are coming to?
You don't understand the issue that Ivorytickler refered to from which I infer that you are not self-employed, run a small business or understand the tax code well enough to do anyone's tax returns. Cutting and pasting from the IRS website is pretty insulting to those of us who have personal experience with this issue.
Those of us who have HDHC only have the option of deducting the cost of premiums paid with after tax dollars to the extent that those premiums along with all other medical expenses (NOT however including anything paid out of the HSA) exceed 7.5 % of the AGI.
Compare that to the premiums paid by employers on behalf of employees. Not only do those employees not have to go through the stupid rigamarole of Schedule A, they don't even see the cost of the premiums. And furthermore, those benefits are not subject to Medicare, SS and Federal witholding payments by the employer. In other words, those premiums do not even exist as far as the IRS is concerned.
Take those medical care deductions off the Schedule A and put them on the bottom of page 1 of the 1040 along with the IRA adjustment and I'll shut up about it. Otherwise the playing field is NOT level.
I had no intention of insulting anyone. Ivory doesn't own a small business, either; she is a teacher who formerly worked as an engineer, I believe in the auto industry. I work for a small business, my spouse has worked for a small business, and I've done my own taxes. I quoted from the law instead of a blog (similar to posting on CD) for purposes of accuracy. Sorry you don't like it.
Quote:
Originally Posted by Lucidkitty
indeed
"The penalties kick in only if an employee receives subsidized coverage through a state or federal exchange, a clearinghouse for private insurance plans. The smallest businesses would be exempt from the penalties; the requirement applies only to firms with 50 or more full-time workers.
In Massachusetts, the penalty for not contributing enough to employees’ health insurance — or not getting enough of them to sign up — is $295 per employee. The employer mandate, however, is broader than in the federal law, affecting companies with the equivalent of 11 or more full-time employees."
FTE's, eh? In other words, a company can have 22 half time employees, and be required to contribute to their insurance. In any event, MA has, I believe, the lowest rate of uninsured people in the country, so apparently the law is working, and I haven't heard of any massive layoffs there.
You won't see a check. I just got a letter from my company about this.
They are not disbursing any money to employees/retirees. They will keep the money "to offset future costs" which they are legally allowed to do. They were given that option as part of Obamacare.
Don't count on seeing any refund of overpayment.
Illegals will still have to be paid for by the taxpayer so there will still be "unpaid bills". And we have anywhere from 12-20 million illegals in this country.
Ooops..I mean "undocumented Americans".
I received a check a couple of months ago from my health insurance for around $135.00, refunding me $ as per the rules under the ACA, FWIW....
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To a small business that can be the difference between profit and loss. That's why they don't offer insurance. 
Applebee’s targeted after franchisee mulls hiring freeze in response to Obamacare
