The Impact of the Health System Reform on Small Business
On Tuesday, June 8th Charles Owens, Michigan Director of the National Federation of Independent Business (NFIB), joined The Collaborative Group for a discussion about the impact of the health system reform on small businesses. The NFIB, a membership organization, is comprised of independent businesses ranging from 5- to 2,500-employees and $500K to $500B in annual sales. This breadth provides a good cross section of Michigan businesses and allows members to discuss their problems and priorities in an open forum. For the past 20-years, the most prevalent issue amongst members has been healthcare. Understanding the needs of its members, the NFIB is an advocate for healthcare reform, but not necessarily the reform that is currently being instituted.
Charles’ presentation elucidated how and when the most integral elements of the reform will take place. Noting that most changes will occur after the 2012 election, Charles stated that this reform will be implemented over the next decade. To summarize the next few years:
- 2011: Tax code will require that employers report healthcare on W2s
- 2012: Every transaction of $600+ will require a 1099
- 2013: Individual income in excess of $200K (joint income in excess of $250K) will be taxed at 2.35% for Medicare – these Medicare taxes can be applied to any healthcare expenditure the government deems necessary
- 2014: Individual healthcare choices will be eliminated and all individuals must have qualified healthcare coverage as determined by the government
- 2014: Employers of 50+ will be mandated to provide insurance or pay penalties to the government
For more information and to download Charles’ full presentation, click here.
To learn how the reform may affect your business and tax requirements, click here for the NFIB’s Credit Calculator.