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Small Businesses Are Trapped by ObamaCare

Posted on August 9, 2013

Small businesses hoping to avoid the high costs of ObamaCare by switching to part-time employees got some unwelcome news last Thursday, as Paul Bedard at the Washington Examiner reported that the Small Business Administration launched a website to explain to employers that the federal government will add up the number of part-time staff employed to determine if enough hours have been worked to meet the “full-time equivalent” criterion.

Though President Obama has unilaterally suspended the employer mandate for one year, many companies that were anticipating it going into effect October 1st are moving ahead with their plans to lessen the impact on their businesses.

Some businesses believed that if they could get their number of full-time staff to under 50, they could avoid activating ObamaCare mandates by cutting full-time workers and hiring more part-timers. Confusion about the employer mandate calculation has been widespread.

Bedard wrote:

Said Matthew Haller of the International Franchise Association, “while its nice the administration has launched a new website, employers have been scrambling since the law was passed two plus years ago for answers to the laws complicated calculations for determining if they are ‘large’ employers and how many ‘full-time equivalent employees’ they have. The uncertainty created by the [health care act] continues to cause franchises and other small businesses to hit the pause button on job creation.”

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15 thoughts on “Small Businesses Are Trapped by ObamaCare

  1. Continue Reading on http link is broken

  2. Betty Gray says:

    How much will it take to get you to resist? Are you just going to lie down and take it, small

  3. 50 full time workers X 30 hours defined as full time = 1500 man hours.
    Without tracking down the rest of the article, if your employees work a total of 1500 hours per week, they will CLAIM you are subject to Obamacare, regardless of the actual law.

  4. Working link to original article: http://washingtonexaminer.com/sorry-businesses-ca

  5. We will see a lot of small businesses who will not add on that 50th employee – which makes Obamacare a jobs killer and impediment to economic growth.

    Realize, this is not about Obamacare "working" – it is about making the situation so bad that everyone will clamor for the government to simply take over the provision of healthcare across the board – think socialized medicine and a National Health Service.

    Line up and take your pill. If you live long enough maybe we'll see you, and if your not over 30 or so we might let some public employee medical hack operate on you.

  6. I'll put it in simple terms. I don't see Obamacare helping anything. At best making more people underemployed or not employed. The health providers are like all other businesses, money is the bottom line same as the drug companies. So don't expect them to feel sorry for us peons. No jobs equal no payroll taxes, so whose going to pay for Obamacare? I hope the dimwits that thought this white elephant up suffer more than us peons, but not likely to happen. Agenda 21, here we come!

  7. Obamacare subsidizes the health care premiums of older, generally sicker workers at the expense of younger ones.

    As an older, now self-employed worker it will probably be cheaper next year for me to buy an individual plan instead of remaining on my spouse's group plan.

    But younger workers will get to pay 2x-3x their current individual premium to subsidize me.

  8. WhiteFalcon says:

    That means that people will just cut back their business to avoid Ovomitcare. WOW! What a big boon to jobs that is. Just as big a boon as Ovomit is to the US. It is a very bad joke. The House should de-fund the whole blamed thing and challenge Ovomit to shut down the Government. The best thing those idiots do for this country anyway is to go on vacation.

  9. I'm just glad I'm old and won't be around much longer..if I need a doctor I'm going to consult Drs. Smith and Wesson.

  10. rev. ron coleman says:

    step one to destroying a country, destroy the economy, by putting small buisnesses out, it is one step closer to destroying the economy which is part of obama plan

  11. Keep in mind this president just held a press conference in which he said he wants tighter controls and scrutiny on the NSA domestic spying program…the same domestic spying program he told Jay Leno on national TV does not exist.

    And this guy was marketed as the anti-Bush.

  12. He screws them coming and going!

  13. I have not heard anything about 1099 (contract) employees. How would Obama care apply to them ?

  14. Obama's attitude toward small businesses coping with Obamacare reminds me of what Clayton Edwards said while runing for governor of Texas arounnd 1990. "If you're going to get raped, you might as well lie back and enjoy it."

  15. What would happen is the IRS would simply tell small businesses that "contract employees" are employees and not independent contractors, and that management would have to pay employment tax on these workers, report their income on W-2 forms instead, and provide all of them with health care.

    That's exactly what the IRS did to dental clinics employing dentists as "independent contractors" around 1993. It would also have gone after realty companies that pretend their realtors are independent contractors, but the Real Estate lobby was too strong.