Court Ruling on Health Care for Employers

Are you a business owner? Confused about the new health care law? Not a problem, we will discuss it here in easy to understand terms.

Court Ruling on Health Care for Employers

If you have 50 full time employees or an equivalent of such amount you will need to provide healthcare for them. If you have less than 50 you do not need to provide them with health care. However, you are still required to buy health care for yourself even if you do not have any employees. Nothing has been said about whether the tax for not buying insurance will be deductible; we will have to wait to find out.

If you provide health care insurance for your employees whether or not you were required to you will still be able to deduct that expense on your return. Whether you will get a deduction for the cost of personal health care will ultimately be determined by the type of business structure you established.

Defining an Equivalent Employee

Something to consider is how the IRS is defining an equivalent employee. If you have more than 100 part time employees that is the equivalent of having 50 full time employees and therefore you must provide health care for them. There is an unlimited amount of combinations you can have that will add up to 50 full time employees, you must be careful when defining it on your tax return to avoid an audit.

The IRS is already started to hire over 15 thousand new employees to enforce these new health care laws. You must be careful if you a business owner to follow the law because they will be looking for anyone to audit that is not in full compliance, especially businesses with over 50 full time employees.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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