There are many tax issues that business owners face when filing their tax returns. Some of the major tax issues include; Affordable Care Act and the tax extenders, tax and wage legislation changes etc. Let us discuss the Affordable Care Act and the issues related to it.
According to the Affordable Care Act also known as Obama Care Act, the health care law applies to all businesses that had 51 to 99 prior-year employees. The requirement may challenge the bottom line for small businesses.
According to the estimate by Congressional Budget Office the cost of providing individuals a health care as per standards of Obama Care is round about $5,800.
The health care law also states that the business owners keep a track of the employee’s details including:
- of hours employees’ work
- Benefit offered to the employee
- Number of full-time equivalent employees
It is difficult for the small businesses to track and formulate all these details because small business usually hires
or seasonal workers. This record keeping could not only be
but also costly.
to fulfill these requirements many business owners have purchased software or hired employees to help them keep track of the data. Employers must report this information to the Internal Revenue Service (IRS) and to their employees. Businesses that do not comply could find themselves paying a penalty of $2,000 per employee after the first 30.
If you find it difficult to fulfill the records, you can take help from Tax help MD. We have the expertise of dealing with all the record keeping and reporting to IRS.