Amy Lynn Smith: Michigan Small Business Offers Competitive Employee Benefits Thanks To The ACA
Ryan Irvin and Amanda Stitt are the kind of small business owners who want to do the right thing for their employees. But they’re also business owners who need to pay attention to the bottom line. Fortunately, they’re able to do both. The Small Business Health Options Program (SHOP) Marketplace at Healthcare.gov gives businesses with less than 50 employees everything they need to find the right plan for their employees and get them all covered. Last year, Irvin and Stitt — who are married with a baby girl, Amelia — were paying for their own insurance after Stitt transitioned from her previous job to become chief executive officer of Change Media Group. They were also paying the premiums of one full-time employee who purchased her coverage at Healthcare.gov.
But setting up an employer plan through the SHOP Marketplace made a lot more sense, says Irvin. For Amanda, Amelia and myself, we were paying $1,282 in premiums last year. We’ll get to deduct those premiums from our taxes but we won’t get the small business tax credit offered through SHOP. Add on what we were paying for our employee’s coverage and we were paying $1,539 a month. For 2015, with our SHOP plan, we’ll be paying $1,448 a month for our family and that one employee, which is a savings of $100 a month in premiums. Plus, instead of a tax deduction of 25-30% for our premiums we’ll get a 40-50% tax credit to the business for the premiums we pay.
Employee health insurance, made more affordable thanks to Obamacare. Here's how it's working for one small business: eclectablog.com/2015/02/michig…—
Amy Lynn Smith (@alswrite) February 22, 2015