Part of a new health-care bill introduced this week includes a provision requiring businesses with over $250,000 in payroll to provide insurance to its employees or pay a penalty of up to 8% of payroll. As I’m sure most small business owners would agree, this coule be very costly to your business. Studies estimate that only half of employers with 3-9 employees offer health insurance. For those businesses, this could be a dramatic increase in costs and could force many out of business. Read the article in the Wall Street Journal here.
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This proposed tax increase & penalty is a sure killer of business at exactly the wrong time.
It will also be a boon to tax advisors who proactively work with their clients to avoid this tax.
Keep up the great work on the blog & twitter!
David