My wife and I work together in our little store. We can pay for our own health care coverage but not our employees. If we have to start paying for our five full-time employees, we will just go out of business and onto welfare. What can I expect? Can we stay in business or should we look for a Pacific Island to move to?
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UPDATED: Jul 15, 2021
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You won’t be required to cover your five employees because the law requiring “paying for insurance or paying the tax” applies to those companies with more than fifty employees. (And there is what you can call, for lack of a better term, a “30 employee deductible” anyway, so a 52-person company would pay the fine for 22 people.) However, you MIGHT be interested in a part of the law that will give you a 35% tax credit if you DO provide health insurance for your employees. The major part of the law that you need to work with is that the average salary cannot be higher than $50,000. If you and your wife are pulling out a lot of money and you are a “C-Corp” you may skew the average, but if you qualify, you may have some very happy employees.