Thanks to Obamacare, Small Businesses Plan on Eliminating Jobs Before 2014

July 18, 2012

Obamacare's employer mandate has small businesses scrambling to reduce their workforce in anticipation of the law's implementation in 2014.

Under the employer mandate, businesses with 50 or more full-time employees have to provide coverage or pay a $2,000 penalty for every worker minus the first 30. Growing businesses have discovered that expanding their workforce beyond 50 fulltime workers is simply too burdensome. In order to survive, many of these companies will have to either scale back the hours of existing employees so that they are no longer classified as fulltime or let them go altogether. CNN reports on how a few businesses are grappling with their mandate:

Kari DePhillips, who co-owns the Content Factory, a public relations firm in Pittsburgh, was hoping she could just break up the company to sidestep the rule. Maybe one firm would do marketing while the other builds websites.

The small company is on pace to exceed the 50-worker threshold in the next few years. DePhillips doesn't want to provide health care, and she definitely doesn't want to pay the penalty, which would be $2,000 per full-time worker minus the first 30.
"A $40,000 fine to my company would be catastrophic," she said.

A larger company mentioned in the same report is similarly burdened:

The other way business owners are planning to deal with the law is a devastating one. They plan to cut staff and switch full-time employees to part-time, which the law classifies as less than 30 hours per week.

That's the reality for the 425 workers at David Barr's nearly two dozen KFCs and Taco Bells across Alabama and Georgia. Barr has already done the math.
He currently provides health care for managerial staff only, and it costs him about $125,000 to cover the 30 who take it. Extending that to every full-timer would cost him another $545,782 a year.

Health reform's creation of state insurance exchanges promises to bring down those costs, but Barr said any expenses even close to that will still outmatch his available cash.

"This business model isn't meant to support those costs," he said.
FINISH

 


blog comments powered by Disqus

David Axelrod describes view of #Brexit supporters from the elitist skybox

June 24, 2016  12:50 PM

#Brexit voters hear about it from their intellectual betters across the pond.

The post David Axelrod describes view of #Brexit supporters from the elitist skybox appeared first on twitchy.com.

NOT The Onion: Look what Buzzfeed thinks Trump's doing too much of while world's 'on fire'

June 24, 2016  12:17 PM

The lack of awareness about the last several years is surreal.

The post NOT The Onion: Look what Buzzfeed thinks Trump’s doing too much of while world’s ‘on fire’ appeared first on twitchy.com.

Holy crap! David Burge calls out an entire generation

June 24, 2016  10:52 AM

Gee, wonder which generation Burge is talking about. Hmmm. Holy crap, we've raised an entire generation who are terrified of not being ruled over. — David Burge (@iowahawkblog) June 24, 2016 Freedom is scary. @iowahawkblog Not being ruled over leads to fascism. — Charles C. W. Cooke (@charlescwcooke) June 24, 2016 Heh. @iowahawkblog they might […]

The post Holy crap! David Burge calls out an entire generation appeared first on twitchy.com.

Dana Loesch reminds Elizabeth Warren why you never bring a knife to a gunfight

June 24, 2016  10:04 AM

Democrats accusing others of corruption … irony alert. .@SpeakerRyan & the @HouseGOP: You should be ashamed of yourselves for your totally corrupt priorities. People are watching. — Elizabeth Warren (@SenWarren) June 23, 2016 Just like we watched you refuse compromise and vote against what you claim you wanted with the Cornyn amendment. https://t.co/0DQ1RJyio1 — Dana […]

The post Dana Loesch reminds Elizabeth Warren why you never bring a knife to a gunfight appeared first on twitchy.com.

What a scream! Howard Dean declares 'British Empire' DOA after #Brexit vote

June 24, 2016  01:06 AM

"This makes no sense."

The post What a scream! Howard Dean declares ‘British Empire’ DOA after #Brexit vote appeared first on twitchy.com.

FSM Archives

10 year FSM Anniversary

More in PUBLICATIONS ( 1 OF 25 ARTICLES )