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 DeAnne Toto
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Many of the records and information management (RIM) industry professionals who took the time to respond to a survey Secure Destruction Business sent out to our readers this fall expressed that they were worried about the changes the Affordable Care Act, or ObamaCare as some call it, would bring about.
We are still years away from full implementation of the act, which is slated for 2014. However, many business owners and analysts alike are speculating on the potential outcome of the law on U.S. businesses. Some lawmakers are seeking to repeal the law or to halt funding for some of its provisions, further adding to the climate of uncertainty.
For the majority of respondents to our survey (More than 60 percent of respondents reported having 20 or fewer employees.), the Affordable Care Act offers a tax credit designed to help the country’s smallest employers and nonprofits, those organizations employing fewer than 25 full-time equivalent employees with average annual wages of less than $50,000. A one-page form as well as instructions on how to claim the tax credit for the 2010 tax year are available at www.irs.gov/newsroom/article/0,,id=231928,00.html?portlet=7.
According to a press release issued by the Small Business Administration (SBA), “These credits are available for tax years 2010 through 2013 and for any two years after that.” Small employers are eligible for a maximum tax credit of up to 35 percent of the premiums they pay, while tax-exempt organizations are eligible for a 25 percent tax credit on health care premiums paid. In 2014, according to the SBA, the levels will increase to 50 percent and 35 percent, respectively.
The Affordable Care Act also provides companies with up to 100 employees the ability to pool their buying power and reduce administrative costs by purchasing health insurance through an exchange.
Karen Mills, SBA administrator, says in the same press release, “Overall, the Affordable Care Act is a critical tool that will help millions of small business owners provide health insurance to people who you often consider to be members of your extended family—your employees. As a nation, we owe you nothing less as you work to grow, create jobs and lead us toward full economic recovery.”
While some SDB readers hope the Affordable Care Act will lead to job creation and economic recovery, many remain skeptical. Only time will tell.
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