Laws & Legislation

 

12 03 2013

12 03 2013

Small Business Opinion, Response to Affordable Care Act

New health care legislation is on the mind of many a small business owner, especially those who are near or above the 50 full-time employee threshold. Such businesses will be required to offer coverage to employees by 2015. The additional cost of benefits is drawing concern from many owners and managers, with some making changes to avoid higher bills, according to a survey by Public Opinion Strategies.

Among franchisee-owned businesses that employ between 40 and 500 workers, 64 percent of decision-makers believe the ACA will negatively impact their business. Fifty-three percent of their nonfranchisee counterparts agree.

Because of the higher cost of providing coverage, many business operators are reducing the size of their full-time staff. Thirty-one percent of franchise and 12 percent nonfranchise businesses have reduced employee hours while 27 percent of franchise and 12 percent of nonfranchisee business have reduced full-time positions to part time. Such changes are being made well in advance, as the mandate to provide coverage does not go into effect for another year.

To stay below the 50 full-time employee threshold, more than half of businesses with 40 to 70 employees will be making personnel changes. Their plans include cutting hours and hiring more temporary workers. Unfortunately such strategies could undermine a businesses’ ability to grow. A cap on the number of employees could make expansion difficult.

If small business owners need to control costs or initiate strategies to meet the employer mandate, they may need to increase cash flow. Owners who would like to invest in their business to increase profits can obtain financing from a small business lender. Instead of dealing with the hassle and unreliability of banks, small business owners can turn to National Funding for a simple and speedy application process.

Featured


  • Tax changes business owners should know

    6 Tax Code Changes Small Business Owners Should Know

    Though everyone knows when tax season is, it always seems to catch many people off-guard. Like it or not, though, when tax time comes, it's crucial that all small business owners gather their documents and start filing right away. The fact that tax laws change every year is almost as predictable as tax season itself.… […]

  • Biggest small business trends of 2017

    3 Biggest Small Business Trends of 2017

    The year has just begun, but it's easy to see which business trends are having on impact across the country. For business owners who already feel behind this year, there is still hope. All these entrepreneurs need to do to get back in the game is catch up on a few trends that are really… […]

  • Small business owner salary

    How To Determine Your Salary As A Small Business Owner

    Be your own boss; fill a need in your community; determine your income; pursue your passion - there are countless reasons that inspire people to run their own business. But regardless of what prompted a person to go the route of self-employment, there's one thing every business owner must figure out: How much to pay… […]

  • Tech's biggest leaders can help small business owners

    What Small Businesses Can Learn From Large Tech Innovators

    What do innovators and leaders in the world of technology have in common with your business? Your immediate answer might be "not much" - these innovators lead especially large companies focusing heavily on research and experimentation with lots of outside funding, after all. However, a closer look reveals plenty of similarities between these entrepreneurs and… […]