Though there are many entrepreneurs and unemployed individuals singing praises of the Affordable Care Act and its ability to provide affordable health insurance to millions who would otherwise be priced out of health care options, there are several small business owners who deem certain rules and regulations surrounding the ACA to be detrimental to their business efforts. According to an aggregation rule within the U.S. Tax Code, if you are a small business owner and employ 50 or more people on a full-time basis, you may be required to provide health care for these employees even if the total number of employees is spread across numerous business efforts.
For example, as reported in The Wall Street Journal, Donna Baker is an owner of an accounting firm, a payroll company and a retail store. She additionally is a minority stakeholder in her husband’s farming business. Though all of her business undertakings are separate entities, the fact that all four businesses currently (in aggregate) employ over 50 full-time employees, she may be subject to this aggregation rule and may be required to offer health-insurance benefits to her combined full – time staff.
Why is this a big deal?
Many small business owners have become paralyzed with financial fears that may come along with this new expense and have chosen to either
1) curtail any expansion and hiring efforts to avoid having to pay this new expense and/or
2) have let some employees go or have cut their hours so they will be deemed part – time employees.
As of now, this mandate defines all full-time employees as those who work more than 30 hours per week.
A Congressional hearing on the matter was held in December and included testimony from several business experts, such as Debbie Walker, an accountant with more than 35 years of experience. Ms. Walker believes that many entrepreneurs won’t realize they are subject to the law’s aggregation rules – which apply mainly to entrepreneurs who own assets or have financial stakes in multiple businesses – until it is too late. She believes that the rules are “just too complicated.” Several business owners have seen their expenses balloon to an additional $50,000 to $350,000 per year in order to be in compliance with this mandate. These costs are then passed down to their customers via increased prices for goods and services, or to the employee through high deductibles and premiums.
Though this aggregation mandate was put into place to prevent businesses from “skirting the law” should they have several business entities and more than 50 full –time employees across these entities, it has placed small business owners in a space of fear which may stunt growth in job opportunities created by these entrepreneurs.
So what do you think? Will this “Aggregation Rule” assist in making small business owners accountable to the Affordable Care Act, or is it a recipe for disaster which does not help the job climate at all?
Also On Black America Web:
This Week’s Celebrity Instagrams (11/26-12/2)
30 photos Launch gallery
1. Little Legend and Puddy 😍😍😍😍
1 of 30
2. "You on point Phife?" "all the time,Tip". 💥 #bannedfromnormal
2 of 30
3. Vegan! The Impossible burger at Crossroads
3 of 30
4. Lawrence #BeforeandAfterEpisodes 1-4: 184lbs 13% body fatEpisode 8: 196lbs 8% body fat S/O @coachdaveboxing with the works outs and @kildareriordan with the nutrition
4 of 30
5. Jus haaaanngin out
5 of 30
6. Meanwhile back at home in Atlanta GA someone mad they not on the 🛳. 😳
6 of 30
7. No limits... Photo cred: Chris Bridges @ludacris
7 of 30
8. new new
8 of 30
9. Apparently my 260lbs is too much for the actual vines in the Hawaiian jungles to hold me without breaking and me falling hundreds of feet. So for safety purposes, I'm forced to swing thru #Jumanjj on wires strong enough to hold 12 adult buffaloes and 1 adult Rock. #OnSet #Jumanji #IronicallyIEatBuffaloDailyForLunch #MoreManThanNatureKnowsWhatToDoWith
9 of 30
10. hey ma! 🎎#wcw 💙
10 of 30
11. Surprise visit to our factories!!! #GoodAmerican #USA
11 of 30
12 of 30
13. Peachy Keen 🔥✨⚡️
13 of 30
14. If this don't look thankful I don't know what does. Happy Thanksgiving to you and yours. #UltraBlessed #24kMagic #SweetPotatoFly
14 of 30
15. Late nights @nbcmarlon with the writers... we in here!!!
15 of 30
16. There goes my baaaaaaaaabbbbyyyyy #QueenKingMagic!!! We're up to something! Ira BIG!!! Stay out our buisness -
16 of 30
17. You want to win every game you play but when you come home to these faces... who cares. #ILoveYouGirls best part of my day, everyday!
17 of 30
18. Steady,steady..... full size jenga.. "I got this one "???? Or do I ?
18 of 30
19. Cornrows kind of day 😉@dontaysavoy2 you convinced me and I love. ❤️️
19 of 30
20. #BrotherlyLove #tbt
20 of 30
21 of 30
22. #basel #TeamLOVE @kingcombs
22 of 30
23. Just introduced a special screening of @directher 's groundbreaking (must see) documentary @13thfilm with my brother @themichaelealy | @unitedblackout #blackoutblackfriday
23 of 30
24. Me & Vanessa Williams giving #DuckLips #Pose on the set of #DaytimeDivas @vh1 - Coming Soon to a tv near you. Lol. - My make up done by @makeupsurgeon
24 of 30
25. This picture just makes me wanna praise the Lord, you hear me!!!!!! Yes Lord brotha #TEDDYCAMPBELL What a #man !!! You are everything right on this picture husband ......... #gorgeous #stylish #classy #strong #masculine #king #sexy #debonair #gentlemenstyle And that #bible in your hand just seals the deal for me (probably cause i know that, that is what helped you become just as amazing as you look😘). While my heart and mind experiences the goodness of God at #church on Sundays, my eyes experiences the goodness of Teddy😍. Amen somebody🙌🏽. "Bless the Lord oh my soul and all that is within me bless his holy name" #myman #myhusband #goodman #blackman #dapperman #godlyman #goodfather #mybestfriend
25 of 30
26. Yesterday was my mama's 53rd birthday!!!!! Got to celebrate with her all day. If this is what I have to look forward to I can't wait. Looking like a soft bucket a cocoa butter. Yaaaaaaaaaas! 😍😍😍 love you mommy!
26 of 30
27. "Shout out to @PureAtlanta for getting the family right"....I'm loving this jogger. 😍😍
27 of 30
28. This pic warms my heart ❤️ #myLogiebeans and aunt aunt umba @itowandabraxton 😘
28 of 30
29. You will always be my baby😜. #HappyBirthdayReginae #mybaby18
29 of 30
30. GC "Gods Child" Red on Red SweatSuit available now at www.MonicaApparel.com ... Take Your Crown wherever you go!! I'm pictured in a Medium... Go to the site now for other options ... cc: @trukernell
30 of 30