Since its enactment, the Patient Protection and Affordable Care Act (PPACA) has had a profound impact on how small and medium sized businesses provide health care benefits to employees. In addition to the widely publicized “mandate” requiring many small businesses to offer health insurance to their employees, the Act contained a plethora of tax changes and new taxes that have a dramatic impact on small businesses and small business owners.

The most notable changes included:

  1. A requirement that employers with 50 or more employees provide affordable health insurance to the employees, or face burdensome penalties;
  2. The enactment of a 3.8% tax on investment income (the “Net Investment Income Tax”); and
  3. The enactment of a 0.9% payroll tax surcharge on wages exceeding $250,000.

As failure to properly comply with the Affordable Care Act requirements can subject a business to penalties of up to $100/day per employee, it is vitally important for a business owner to understand what changes affect their business and when those changes take effect.  STA can assist you in understanding the application of the Affordable Care Act to your business and allow you to be proactive in planning for the changes to minimize potential taxes and penalties.