The Affordable Care Act’s Impact on Your Small Business

Call it the political science major in me but I can’t help but find the political story embedded within job topics. The sequester has brought a whole new set of job-related topics to the forefront. Front and center of the budget issues, however, is the Affordable Care Act, or Obamacare depending on who is referencing the legislation. Digging through the minutia can be tricky, but vital, to small business human resources professionals. With the Affordable Care Act once again taking a national spotlight, we’re going to highlight what the health care act can mean for your small business.

No matter your current employee healthcare offerings, the Affordable Care Act will likely alter your benefits in some way, shape, or form. HR pros at all businesses, especially small businesses, will be required to comb through their healthcare options, if any, to make sure they comply with the Affordable Care Act. It won’t be an easy task, especially for small businesses who may have one person to deal with all office management, including HR matters. However, there are also a number of exemptions for small businesses designed to lower overall costs for employee healthcare benefits, including a tax credit. The credit may increase to up to 50%, helping to alleviate some of the burden small businesses face when offering health benefits to employees.

Small businesses will have to deal with a number of compliance issues when the Affordable Care Act goes into effect next year, which depending on your operation, may cause added stress to HR managers. A more complete list of the impact the Affordable Care Act will have on small businesses, and tips on how to prepare for the changes, can be found at HealthCare.gov.

Do you work in HR at a small business? What changes are you making to your company’s health care options in order to comply with the Affordable Care Act?

IMAGE: Courtesy of Flickr by danisabella