Since the fine on companies for not providing health insurance is less than giving employees that benefit, the plan surely must be that Americans are dependent on government for their health care.
[typography font="Ubuntu Condensed" size="24" size_format="px" color="darkred"]Walmart’s New Health Care Policy Shifts Burden To Medicaid, Obamacare[/typography]
Walmart, the nation’s largest private employer, plans to begin denying health insurance to newly hired employees who work fewer than 30 hours a week, according to a copy of the company’s policy obtained by The Huffington Post.
Under the policy, slated to take effect in January, Walmart also reserves the right to eliminate health care coverage for certain workers if their average workweek dips below 30 hours — something that happens with regularity and at the direction of company managers.
Walmart declined to disclose how many of its roughly 1.4 million U.S. workers are vulnerable to losing medical insurance under its new policy. In an emailed statement, company spokesman David Tovar said Walmart had “made a business decision” not to respond to questions from The Huffington Post and accused the publication of unfair coverage.
Read the rest of the article at HuffPo.
Business can never thrive, therefore not create jobs, as long as government is in the way. For a list of over-burdening mandates and taxes, visit the NFIB.
Which Business Face Potential Penalties?
Businesses with 50 or more full-time employees or full-time equivalents (FTEs) face potential employer mandate penalties. In this context, a full-time employee is one who works 120 hours per month or more – roughly 30 hours per week. In counting toward 50, each 120 hours per month of part-time labor comprises one FTE.
So do owners with 50 or more FTs or FTEs in multiple businesses.
If an owner has several different businesses, they may or may not be treated as a consolidated group under the Tax Code. If they are treated as consolidated, then the full-timers and FTEs in the multiple businesses will be added together and treated as one business in determining whether the employee count is 50 or more.
Penalties are calculated one way if you don’t provide coverage.
How Much Are The Penalties?
If a business does not provide insurance and if at least one employee receives federal insurance subsidies in the exchange, the business will pay $2,000 per employee (minus the first 30). Example: a business with 50 employees, two of whom are subsidized, would pay $40,000 = $2,000 x (50 – 30). To qualify for subsidies, an employee must meet two
criteria, described below.
They’re calculated another way if you do provide coverage.
If a business does provide insurance, and if at least one employee receives insurance subsidies, the business will pay $3,000 per subsidized employee OR $2,000 per employee (minus the first 30) whichever is less. So a providing business with two subsidized employees would be fined $6,000. With 14 or more subsidized employees (above the tipping point for the formula), the penalty for a 50-employee firm would be $40,000.
Employees must meet two criteria to get subsidies.
What Determines Whether An Employee Qualifies For Subsidies?
To qualify for subsidies, an employee must meet two criteria. First, his or her household income must be less than 400% of the federal poverty level ($89,400 for a family of four in 2011). Second, the employee’s portion of the insurance premium must exceed 9.5% of household income.
The mandate discourages business growth and job creation.
How Will The Employer Mandate Affect The Economy?
The mandate makes it extremely expensive to cross the 50-employee threshold. For example, a midsized restaurant that goes from 49 to 50 employees will face a $40,000 per year penalty. A business can avoid the penalties by firing employees, by not hiring new ones, by replacing full-timers with part-timers, or by outsourcing. Estimating the costs of hiring and expanding will be complex and confusing.
How many are already financially dependent on government? If you add Social Security, Medicare and unemployment benefits to Medicaid, food stamps, et al, almost half of America. We have become an ‘Entitlement Nation’. The plan?