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 (10/15-10/21)
31 photos Launch gallery
1. Just a NY girl with BIG dreams....
1 of 31
2. HAPPY CHILDREN=QUALITY PARENTING. We don't always see eye to eye on everything and that's normal. We're human beings. But we come together and do it right for what's important, the kids. We are not enemies, we are parents. And we are parents 1st. S/O to @monyettashaw for making Mason's bday memorable. S/O to @itscrystalsmith at home taking care of our other lil' Prince. ❤️❤️❤️ THIS IS WHAT CO-PARENTING LOOKS LIKE. #Blessed #Happy #AboveTheDrama #BiggerThanUs
2 of 31
3. So happy to finally be able to share with you all that I’m the new Global Brand Ambassador for @Revlon! Follow my day on RevlonSnaps. Yay! Choose Love, Everybody! #RevlonXCiara #chooselove #ad
3 of 31
4. Glam on point!!!@makeupbymotoko & @shaylinjoneshair #easybreezy @lifetimetv #beachesmovie #january2017 😘
4 of 31
5. ✨True love ✨📸: @jessiemarrerophotography
5 of 31
6 of 31
7. Today was not easy..but by the grace of God we all got through it. Words cannot express our gratitude for all of your Prayers, Positive thoughts and Support for us throughout the years. Tommy will be missed but most certainly never forgotten...And PLEASE don't ask "Where's Martin?.." he was there too...just not in this picture. Lol! God bless you all.. #LoveConquersAll #MartinShow
7 of 31
8 of 31
9. West coast get ready for #RockyHorror. I will be live tweeting again. #letsdothetimewarpagain
9 of 31
10. #THEKEYS pre order yours now ... Available everywhere #NOV22 #WeTheBest 🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑
10 of 31
11. We about to ROCK at #KCABlackBall!! All for our life-changing effort to end 🌎 AIDS.
11 of 31
12. Today's #SNAPJACK is brought to you by @yazzthegreatest 😂😂😂💋💋💋
12 of 31
13. Damn girl you kinda old to be headed to the Go Go. You coming in at the age they leaving. LMAO
13 of 31
14. Daddy daycare B-Boxin with @acewellstucker @shopraisingace
14 of 31
15. #FBF Naviyd & URV "LIL MONSTERS"
15 of 31
16. HAPPY BIRTHDAY TO ONE OF THE BIGGEST LEGENDS IN OUR HIPHOP HISTORY! @snoopdogg CONTINUED BLESSING AND LOVE FAMILY!!!!! REAL OG!
16 of 31
17. Thank you for a beautiful night VSU! Let's do it again! #HOMECOMING
17 of 31
18. Had a great time this morning with my familia Erica, Griff & Truth!!
18 of 31
19. Check out my interview on @essence facebook live. #inmyownwords #nycpromo #day2
19 of 31
20. #She💋 #tbt #TheCoveAtTheAtlantis #DawgPawsAndAll
20 of 31
21. Bae #retailtherapy
21 of 31
22. Why me and @coryhardrict got the same pose... and notee... new mouth #naked
22 of 31
23. When my husband is my personal 'hype-man'! it kills me every time! 💜😂 #WHATNOW #lostfiles📷
23 of 31
24. Diggy Simmons
24 of 31
25. Hand full of @jacquieaiche 💙💎💍 @esnail_la 💅🏾
25 of 31
26. SuperSoulers! You can watch my interview with Carl Lentz live from my Facebook page, tomorrow at 11a ET| 8a PT. #SuperSoulSunday
26 of 31
27. 💋 .. When the friendship is easy like Sunday morning. ☀️
27 of 31
28. Sunday mornings are the best........... hugs and cuddles with my angel
28 of 31
29. #huggar16 #hellohuggars
29 of 31
30. My gym is everywhere!.. #RnBMoney #TheGeneral 📸: @twelvepastseven
30 of 31
31. Nothing I would rather be doing... Rocko setting up our movie, Romelō working on a puzzle & Laiyah singing and sharing all she's learning at school... I'm so grateful for the joy they've brought into my life ... Praying for peace , joy & love in the home of EVERY family ♥️ #HeadScarfPJSunday LOL 😂
31 of 31