Despite the fact that Obama’s healthcare reform is dominating the news these days, many employers are wondering, “How exactly would it affect us?”
With several Congressional committees approving key proposals of the healthcare legislation, here’s what businesses should know:
The healthcare reform bill would require all companies — except for those that fit the definition of a small business — to provide employees with health insurance.
Firms with payrolls above $500,000 that do not provide coverage would be hit with a tax ranging from 2% to 6% of the payroll cost.
In addition, employees must have healthcare coverage or face a tax penalty — although there are certain exemptions for hardships.
Note: Under the current bill, health benefits would not be taxed as income.
And what about universal health care?
Beginning in 2013, any workers with incomes of up to 400% of the federal poverty level would be qualified for a subsidy toward health insurance. They could opt for a plan through a national health insurance exchange — with the government’s plan as one of the options.