Sunday, January 20, 2013

Affordable Care Act Drives Down Care and Prosperity


Given how the Affordable Care Act will drive the entire country into default and economic disaster is not lost on the free market businesses, so why wouldn't they decide to stop doing anything that will expand their businesses which would expose them to the new crushing taxes from Marxian regulations?


Another mandate that is larger then all the other major three, Social Security, Medicare and Medicaid which will destroy, not only our health care system, but completely destroy our country as we know it today.

The fact is a majority of the voters in this country, for reasons unknown, voted last November for self destruction. Why would they do that?


A Health Scare for Small Businesses


Source: "A Health Scare for Small Businesses," Wall Street Journal, January 16, 2013.
January 18, 2013
Even though the rule doesn't go into effect until early 2014, a business could be subject to the so-called employer mandate if, during 2013, it averages 50 or more full-time equivalent employees, according to recently released regulations from the Treasury Department and the Internal Revenue Service. This means employers will have to provide health coverage that meets government standards or potentially pay a penalty, says the Wall Street Journal.
  • Employers have the choice to calculate their head counts by averaging the full 12 months of 2013 or a consecutive six-month period during the year.
  • Many small-business owners haven't yet realized that the way they structure their firm in 2013 could determine their status under the law in a year's time.
  • The government issued the little-noticed regulatory guidance on December 28.
  • To avoid the health care law's penalties, many employers are considering hiring only part-time employees or deliberately curbing growth so that they have no need to hire.
Many small business owners believe the best solution is to hire independent contractors, who would be able to take on certain tasks without upping the company's headcount.
  • Typically, independent contractors are less expensive for employers, who don't have to pay taxes on wages or supply benefits, as they would for their employees.
  • Reliance on independent contractors has increased over the years, particularly in the recession, when employers sought less expensive labor.
  • In December 2012, 6.7 percent of payroll checks written by small employers went to 1099 workers, or those not considered employees of a company, according to SurePayroll, a Chicago-based payroll firm.
  • That's roughly double the 3.5 percent of payroll checks that went to 1099 workers in December 2007.
The trend is expected to accelerate this year given the framework of the looming health care law, employment analysts predict.

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