Massachusetts Health Insurance and your small business
This entry was posted on 1/16/2007 5:32 AM and is filed under Small Business Tips.
New Massachusetts Healthcare mandate for Business Taxes
For business owners if you have 10 or more employees you
must offer a non-discrimination health plan by January 1, 2007. There are three
traps for employers that you need to watch!
- The
free-rider trap.
- The
definition of employee trap.
- Fair
share obligation trap.
The cost of the free-rider trap could bankrupt a small
business!
The definition for an employee for the universal healthcare
rules are different then the definition under payroll rules! For payroll tax
purposes, Massachusetts follows Federal payroll rules. For healthcare purposes,
Massachusetts follows the Worker’s Compensation rules. We are not a law firm
and you need to discuss the definitions with a qualified lawyer. We can provide
the names of several law firms if you do not have one and only you can
determine what law firm is qualified to offer you the legal guidance that you
seek.
The “Fair Share Obligation” went into effect on October 1,
2006. This is an obligation to pay up to $295.00 per year per “Full-Time
Equivalent Employee” (FTE). Who is obligated? Any non-governmental employer
with more than 10 “FTEs” needs to be concerned with this new obligation.
THESE TRAPS INCLUDE ALMOST UNLIMITED LIABILITY FOR SMALL
BUSINESSES! These rules do not make a distinction between full-time, part-time,
seasonal, or any other type of employee!
You can “offer to contribute toward” and/or “arrange
for” the purchase of healthcare insurance for your employees.
