What health care reform means for your business

[kokonut]

I wrote something similar in another thread. I always laugh when I hear people complain about the company the work for. They have no clue what it takes to make things work. Heck if it's that bad start a better one. There are plenty of businesses you can start for next to nothing

Well, starting a business nowadays, or soon in the future, would be a much harder decision knowing there are even more hurdles to overcome. The risk falls entirely on the owner. Many people do not realize this nor appreciate this fact. Small businesses make up good chunk of businesses done today. Existing small businesses now (under 5 years old) will likely see an increase in failure business rate. Majority businesses fail after five years.
Startup Failure Rates — The REAL Numbers | Small Business Trends

If you think entrepreneurship is hard today, wait a few more years.

 

[TXgolfer]

Well if this is a legal loophole from this health care bill, I can see a rise in demand from Temp Agencies. Hire temps and train them to work for an X amount of time and then rotate them out for a new set of employees.

For most Temp Agencies, they loan out their employees for a minimum of 3 months and then that's it. Temp Agencies gives them their last paycheck and they're gone. The temps then go another agency to find work. So I can see Temp Agencies flourishing from this kind of business deal and neither side has to provide Health Insurance because they're not considered full time or permanent workers.

A big savings for both the Temp Agency and the Company that contracts with them.

So I can see a big growth of all sorts of new Temp Agencies looking for a piece of the pie popping up all over the place trying to land contract deals with various companies.

Yiz

That's good thinking. Easy business to start too. You need a phone and computer. Done


The plan works because you are providing a service....like an agent. The business pays you as the agent. You in turn pay your client their share by contract...Nobody is ever employed. Just have to pay your own health Ins.

 

[yizuman]

That's good thinking. Easy business to start too. You need a phone and computer. Done


The plan works because you are providing a service....like an agent. The business pays you as the agent. You in turn pay your client their share by contract...Nobody is ever employed. Just have to pay your own health Ins.

Yep, the law states 50 employees or more that we have to provide insurance. Well, that's not a problem. Keep it less than 50, say 45, plus yourself.

Let's just say I get a small business loan, rent out a small office space, just need a computer, a printer, a desk, chair and some furniture for the guests that come in and sit down for me to interview. (All that is a tax break by the way, purchasing items for your business)

Then let's say my business caters to C-Stores. (I foresee C-Stores closing 3rd shifts to cut back expenses and labor costs) So I make contract deals with C-Stores and then send out employees to them. The company they're assigned to provides training and uniforms. I provide their paychecks and I get paid based on the contract.

There's a lot of C-Stores that is one owner and has family members helping them out in my area. Mostly Indians from India. Most of them work the day shift (1st shift), they just want non-family workers for 2nd shift until closing, which will be 2 people employed. So I can send out 4 workers, 2 for 5 days and 2 for weekends. All temps and they work for an x amount of time until I let them go with their last paycheck and send out a new set of employees.

I can interview a buttload of potential temps and keep them on file until I call them to come in and ready to send them out to the work locations, as long I maintain under 50 employees working at the same given time. So no need for health insurance from me and none from the customers that I contract out to them. We're both health insurance free, except of course for myself and the customers who contract with me.

It's not something to get super rich off on, but it can be a stable business.

Yiz

 

[TXgolfer]

IRS to Serve as Health Reform Enforcer, but Lacks Authority to Enforce



The Senate bill doesn’t provide any funding for the expansion of the IRS, and it virtually ties the hands of the IRS to collect fees on individuals and businesses who don’t buy health insurance.

The health care reform bill to be signed Tuesday by President Obama would give the IRS a new mandate to enforce some of the initiative's key provisions -- but apparently not the means to do so.

Under the Senate bill approved Sunday by the House, the Internal Revenue Service would be called on to ensure Americans are obtaining health care insurance and businesses are offering it, or else they could face fines. Many would receive subsidies to help pay for insurance.

The emphasis is on incentives for healthy people to buy insurance, thereby spreading the risk of older, less healthy people over a broader pool of customers. For those earning between $22,050 and $88,200, there are tax credits for health insurance premiums. In addition, individuals initially face fines of up to $750 for not buying in; businesses would face fines of up to $3,000.

It will cost the IRS $5 billion to $10 billion over 10 years to handle the new workload, according to a March 11 estimate by the Congressional Budget Office. But the Senate bill doesn’t provide any funding for the expansion of the IRS, and it virtually ties the hands of the IRS to collect fees on individuals and businesses who don’t buy health insurance.

“The use of liens and seizures otherwise authorized for collection of taxes does not apply to the collection of this penalty," according to the non-partisan Joint Committee on Taxation. "Non-compliance with the personal responsibility requirement to have health coverage is not subject to criminal or civil penalties under the code and interest does not accrue for failure to pay such assessments in a timely manner."

That means there’s virtually nothing the IRS can do to enforce the fines in the legislation, forcing the tax man to rely on the consciences of taxpayers or to skim off any federal benefits, tax credits or refunds they have coming to them.

"In other words, if you're due a refund or some other federal benefit, and you didn't obtain qualified insurance, your refund or benefit will be tapped for your fee,” said Bill Ahearn, director of policy and communications for the Tax Foundation.

“People who aren't due any refunds or federal benefits will apparently face no collection action, as the IRS's hands will be effectively tied and it will be a truly voluntary tax."

Supporters of the bill, however, believe that while the IRS needs to be able to enforce the fines, it’s unlikely that the agency's inability to do so will give people a reason not to buy into health care.

“Surveys routinely show that people don't pay for health care because they can't afford it,” said Timothy Jost, a professor at Washington & Lee University Law School. “This bill gives them a way they can afford it.”

Fox News' Jessica Weinstein contributed to this report.

FOXNews.com - IRS to Serve as Health Reform Enforcer, but Lacks Authority to Enforce

 

[kokonut]

Thieves.

 

[TXgolfer]

Thieves.

But nice thieves, according to the article anyway......

Time for more golfer theater......

IRS: You have no health insurance. Pay this fine now!
Johnny Taxpayer: No!
IRS:please?
JT:I said no!
IRS: OK

 

[Reba]

And you have a duty to pay your share for the health care.

Why is it so hard to accept that you should be responsible? Anyone who jettison health insurance is irresponsible, given the fact that it often leads them to be broke and go bankrupt.

My husband, daughter, and I are all self employed, and we all pay our full taxes (which means the employer and employee taxes both) even though we are not eligible for benefits such as medical care, unemployment, disability, etc.

We can't jettison something we never had in the first place.

 

[Reba]

Independent contractors are considered to be self employed, are they not?

Independent contractors are self employed, yes.

 

[Reba]

No. Those that are self employed will still be required to have insurance. They just don't have an employer to provide it for them. But that is the way it is now, too. It is one of the consequences you accept when you become self employed.

Health insurance for self-employed people is voluntary. If self-employed workers don't want health care insurance, they don't have to get it, unless it's a requirement of the specific job. Most people we contract with don't care if we have health insurance. They usually care only about liability insurance.

 

[Jiro]

And you have a duty to pay your share for the health care.

Why is it so hard to accept that you should be responsible? Anyone who jettison health insurance is irresponsible, given the fact that it often leads them to be broke and go bankrupt.

Why is it so hard for you to understand the concept of Personal Responsibility? Why is it government's business to tell people how to be responsible? Is it government's business tell me to not make investment in something that can bankrupt me?

If they are broke and cannot afford medical expense.... there are plenty of good-will charities and there are a handful of finance companies. People go broke and get bankrupted because it is them who made poor financial decisions.

 

[Reba]

I love when old people tell Obama, "Keep the government out of my Medicare!"

LOL!

Which the government forces us to fund and use. We don't have a choice.

 

[kokonut]

What good is it with a bankrupt govt when we get all borrowed out and interest spiraled out of control because of this?

These are sheeps in wolf clothings. Guess who is the leader of the pack?

 

[kokonut]

But nice thieves, according to the article anyway......

Time for more golfer theater......

IRS: You have no health insurance. Pay this fine now!
Johnny Taxpayer: No!
IRS:please?
JT:I said no!
IRS: OK

LOL. Side effects of higher/more taxes and mandatory health insurance for all mean less small businesses = higher unemployment rate. Mandatory on health insurance required of small businesses is like taxes to them. For larger companies, all those extra costs will be born by the consumers.

 

[Lighthouse77]

Which the government forces us to fund and use. We don't have a choice.

yes, their hard-earned money was taking out through taxes for medicare when they retire.

 

[Reba]

I did that's why I retired....lol

It's the opposite for us. We'll probably never be able to retire, at least not completely.

 

[TXgolfer]

It's the opposite for us. We'll probably never be able to retire, at least not completely.

I know... Many of my friends are in the same boat. It looks like things are getting worse too. Hopefully things will turn around in January.

 

[rockdrummer]

By no later than 2014, states will have to set up Small Business Health Options Programs, or "SHOP Exchanges," where small businesses will be able to pool together to buy insurance. ("Small businesses" are defined as those with no more than 100 employees, though states have the option of limiting pools to companies with 50 or fewer employees through 2016; companies that grow beyond the size limit will also be grandfathered in.)

The Congressional Budget Office has estimated that the exchanges would ease small business insurance costs, albeit only marginally: premiums in the small-group market are forecast to fall between 1% and 4% under the exchanges, while the amount of coverage would rise by up to 3%.

* For the next four years, until the SHOP Exchanges are set up, businesses with 10 or fewer full-time-equivalent employees earning less than $25,000 a year on average will be eligible for a tax credit of 35% of health insurance costs. (Companies with between 11 and 25 workers and an average wage of up to $50,000 are eligible for partial credits.)

The tax credit will remain in place, increasing to 50% of costs, for the first two years a company buys insurance through its state exchange. The Congressional Budget Office predicts that the tax credit will affect about 12% of individuals covered via the small-group insurance market, lowering their cost of insurance by between 8% and 11%.


These are actually benefits and breaks provided to small business owners.

One would have to take a pencil to it in order to determine if there will be an increase or decrease to both the businesses and the insured.

 

[Reba]

...The Congressional Budget Office has estimated that the exchanges would ease small business insurance costs, albeit only marginally: premiums in the small-group market are forecast to fall between 1% and 4% under the exchanges, while the amount of coverage would rise by up to 3%.

...The Congressional Budget Office predicts that the tax credit will affect about 12% of individuals covered via the small-group insurance market, lowering their cost of insurance by between 8% and 11%.

These are actually benefits and breaks provided to small business owners.

Not very impressive.

Won't be of any use to my family's businesses.

 

[Boult]

Opinions turn favorable on health care plan - USATODAY.com

 

[PowerON]

look like more doctors are against over health care bills

because it require more work for them to fill out the form and send via back to federal to know people's condition

and federal will pay what cost to make doctor accept the cheap labor like if they work for nothing.