Employer Penalties under the Health Care Reform – What Is the Cost

Tax Professionals' Resource
June 21, 2013 — 1,391 views  
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Health care reform is essentially the period of change for any health care policies within the country. By purpose, health care reform and health care reform penalties are primarily focused on improving the entire structure and methods used by health care organizations. This is to ensure that proper and considerate care is available to everyone.

Checklist for Employers for Health Care Reform

The Patient Protection and Affordable Care Act primarily governs the health care reform and there are a number of factors that businesses and employers need to keep in mind when drafting their internal set of governing rules. Small businesses, of 25 full-time employees or less, which offer health benefits, are now eligible for tax benefits. Lactation breaks are now required to be allowed by employers in keeping with the health care reform laws that focus on preventive health care and healthy upbringing. The lactation breaks must be allowed for up to 1 year after the birth of the child. 

Another reason why health care reform penalties are put in place is because of the fact that millions of Americans spend more than one quarter of their annual paychecks just to pay off annual premiums. Adequate health care is not being provided in a number of cases.

Because of the fact that health care reform penalties are serious trouble for businesses, it is advisable for each corporation to get in touch with their advisors. Businesses should also go through the various rules that need to be followed to roll out the plans for health care within the company.

How to Avoid the Penalties

As with any governing legislature, making sure that you do everything in your power to avoid any health care reform penalties will generally keep you in line with the law. The type of employees that work for you will generally decide the kind of strategy you should use, when it comes to making sure that you are not hit by any health care reform penalties. For instance, if you have part-time employees, ensure that you fully understand the rules regarding how the workman hours are calculated. Some businesses assume that simply using the ‘part-time’ strategy will keep them away from getting involved with health care reforms, but this is not the case.

Due to the problem that surfaces with independent contractors and facing health care reform penalties it is hard to classify the contractors. Although not impossible, human resource teams across the board generally have a problem with this and they face some serious repercussions. Having leased employees will see you face very much the same problems that you did with independent contractors, while separate entity employees has a complex system to ensure that the coverage offered by the employer costs significantly less. 

Health care reform penalties will cover almost all angles that were previously used by businesses to help them reduce certain additional costs. However, since there are many laws that govern it, it is essential to consult a professional to ensure that your business does not fall foul of the regulations.

Tax Professionals' Resource