- 24,553
- Frankfort, KY
- GTP_FoolKiller
- FoolKiller1979
I have to assume with such a small staff that total payroll is under $500,000. If so they are exempt. Here are the special rules for small employers:*raises hand*
If this is the case, my employer, which consists of 2 partners, 1 full-time employee (me), and 1 part-time employee, just got saddled with about $60,000 worth of overhead per year.
http://thomas.loc.gov/cgi-bin/query/F?c111:1:./temp/~c111CX4X4j:e330844:
(b) Special Rules for Small Employers-
(1) IN GENERAL- In the case of any employer who is a small employer for any calendar year, subsection (a) shall be applied by substituting the applicable percentage determined in accordance with the following table for `8 percent':
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If the annual payroll of such employer for the preceding calendar year: - The applicable percentage is:
Does not exceed $500,000 - 0 percent
Exceeds $500,000, but does not exceed $585,000 - 2 percent
Exceeds $585,000, but does not exceed $670,000 - 4 percent
Exceeds $670,000, but does not exceed $750,000 - 6 percent
Of course, if annual payroll is over $500,000 I see a very easy way to reduce it. I wonder how many pay cuts and lost jobs will result from this?
But don't worry, they understand this may be worse than they think, so a study is going to be done to check for the need for a hardship exemption. So, by 2012 small employers should know if they can apply for an exemption.
SEC. 416. STUDY ON EMPLOYER HARDSHIP EXEMPTION.
(a) In General- The Secretary of Labor together with the Secretary of Treasury, the Secretary of Health and Human Services, and the Commissioner, shall conduct a study to examine the impact of the employer responsibility requirements described in section 415(a) and make a recommendation to Congress about whether an employer hardship exemption would be appropriate.
(b) Items Included in Study- Within such study the Secretaries and Commissioner shall examine cases where such employer responsibility requirements may pose a particular hardship, and specifically look at employers by industry, profit margin, length of time in business, and size. In this examination, the economic conditions shall be considered, including the rate of increase in business costs, the availability of short-term credit lines, and abilities to restructure debt. In addition, the study shall examine the impact an employer hardship waiver could have on employees.
(c) Report- Not later than January 1, 2012, the Secretaries and Commissioner shall report to Congress on their findings and make a recommendation regarding the need or lack of need for a partial or complete employer hardship waiver. The Secretaries and Commissioner may also submit recommendations about the criteria Congress should include when developing eligibility requirements for the employer hardship waiver and what safeguards are necessary to protect the employees of that employer.
Of course the one problem with this is that if your employer is small enough that this kind of added expense could break them and they get an exemption then you are left on your own, without much hope of a pay raise, to find a plan without the benefit of a group plan...or face a penalty.
Yeah, this plan just screams genius.