The Richmond Register

Local News

May 1, 2013

'Obamacare’ brings tax credits, health exchange options to small businesses

Affordable Care Act

RICHMOND — The biggest changes brought by the Affordable Care Act go into effect Jan. 1, and many Americans, especially small business owners, do not know exactly how the bill will change employee healthcare.

Ragan Hunt, executive director of the Kentucky Voices for Health, presented a workshop Monday at the Madison County Extension Office on the ACA and what it means for Kentucky small businesses.

The dozen people that were present peppered Hunt with questions about tax credits, requirements on offering health insurance and how the bill’s initiatives are being funded.

Hunt admitted that the long-term affects of many of the bill’s stipulations are still unknown and won’t be determined until the ACA has been implemented. However, federal and state governments hope that under the ACA, more small business owners, their employees and the self-employed will be able to access affordable health insurance plans.

Small business tax credits

The ACA defines small businesses as those with fewer than 50 full-time employees and pay average annual wages of $50,000 or less, Hunt said.

Small businesses are not required to offer health insurance to their employees and will not be fined for this choice, Hunt said.

However, businesses that employ 25 or fewer full-time workers are eligible for tax credits if the owners offer health insurance to workers. The credits can equal up to 50 percent of a business’s portion of the premium.

In order to be eligible for the tax credits, the business must pay at least 50 percent of the premium cost for employees, Hunt said.

Businesses can actually start claiming this credit in their 2013 taxes for up to 35 percent of employers’ portion of the health insurance premiums for employees.

Statistics from 2011 reveal that two out of five businesses in the nation will qualify for these tax credits, Hunt said.  This could affect 19.3 million employees and possibly provide $15.4 billion in tax credits to small businesses.

Currently 60.4 percent of small business employees have health insurance, but a study by the Rand Institute found that the ACA may be able to expand health insurance to 85 percent of these employees.

Text Only
Local News
  • 4-24 UKatWaco1.jpg Wildcats encourage Cardinals to work hard in school

    University of Kentucky student athletes Kastine Evans, a guard on the women’s basketball team, and Jon Hood, a guard on the men’s team, stopped by Waco Elementary School on Wednesday to talk about the benefits of working hard in school.

    April 23, 2014 4 Photos

  • Mayor, commissioner pay changed

    The Richmond City Commission approved 5-1 a new pay scale for the mayor and commissioners at a special-called meeting Wednesday morning.

    April 23, 2014

  • 4-24 Lorenzo McWilliams.jpg Harrodsburg to get old Richmond police mobile computers

    Richmond is donating to the city of Harrodsburg eight of 39 old computers formerly used in police cruisers.

    April 23, 2014 1 Photo

  • 4-24 HOSAblooddrive.jpg Health science students organize blood drive

    Aside from the gift cards and free snacks, 50 Madison County high school students have other reasons for donating 35 pints of blood Wednesday to the Kentucky Blood Center at Madison Central High School.

    April 23, 2014 1 Photo

  • Third student charged in dorm room robbery

    A third person, originally thought to be a robbery victim, was charged Wednesday in connection with an armed robbery that occurred March 30 on Eastern Kentucky University’s campus

    April 23, 2014

  • Bucher Family plant sale starts Friday

    The Bucher Family annual plant sale, a yearly tradition in Madison County for 15 years, will kick off Friday morning.

    April 23, 2014

  • 4-23 Gravestone.jpg In search of the last resting place

    At a popular illegal dump site off Bybee Loop in Waco, two marble grave markers were among some items found there by Pat and Ronnie Aldridge, residents who live about 250 yards from the area.

    April 22, 2014 1 Photo

  • Fiscal court awards EMA bids

    Two more bids were awarded at Tuesday’s Madison County Fiscal Court meeting for the emergency operations agency.

    April 22, 2014

  • 4-23 Peter Crowe.jpg Intoxicated man charged with wanton endangerment

    A 27-year-old Richmond man was charged Sunday with second-degree wanton endangerment after he was found intoxicated and walking with several young children in the Keystone Drive area, according to a Richmond police report.

    April 22, 2014 1 Photo

  • Absentee voting available for May 20 election

    Walk-in absentee voting for the May 20 primary has begun and will continue until May 19, County Clerk Kenny Barger announced Tuesday at the Madison Fiscal Court meeting.

    April 22, 2014

AP Video
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide

Should Richmond rezone the southwest corner of Main Street and Tates Creek Avenue to B-1 (Neighborhood Business) with restrictions to allow construction of a financial services office?

     View Results