The Government and Your Business: 6 Ways Your Company Might be Impacted in the Coming Year

2010's landmark legislation, the PPACA, or "Affordable Care Act" is rolling along toward full implementation. The insurance exchanges will open for enrollment on October 1st and the mandate for individual coverage goes into affect January 1, 2014. Business owners wonder how the new law will affect them. Here are six ways your company could be affected when the law kicks in.

1. Hiring New Employees

The ACA requires employers with 50 or more full time employees to provide approved coverage for their employees or face penalties. Many business owners are evaluating their staffing needs against the costs associated with expanding beyond 50 employees.

2. Employee Hours

The new law defines a full-time employee as one working 30 hours per week or more. Business owners are looking at employee scheduling, especially regarding part-time employees, which were defined as working fewer than 32 hours per week prior to the law's implementation, in order to minimize compliance costs and penalties for part-time employees.

3. Seasonal Workers

The law classifies a business as a "Large Employer," subject to the minimum coverage requirements if it had 50 full-time or full-time equivalent workers 120 days or more in the previous year. Businesses who rely on temporary or seasonal employees will need to keep careful records in order to avoid costly mistakes about whether or not the law's coverage mandates apply to them.

4. Mandated Coverage

Companies that currently offer health insurance to their employees will need to make sure their plans are in compliance with the minimum coverage limits imposed under the ACA. Many low-cost insurance plans with higher deductibles and caps on benefits do not meet coverage requirements and will need to be replaced with more comprehensive plans to avoid penalties.

5. State and Federal Insurance Exchanges Available to Offset Employer Costs

Business owners who are unwilling or unable to offer plans approved by the ACA can now pay a fee and direct employees to the new online marketplaces to purchase insurance coverage for themselves. Allowing employees to utilize these exchanges can significantly lower the cost of benefits and compliance with the law.

6. Tax Credits for Small Business Owners

Small business owners, depending on income, will be eligible for tax credits to offset the cost of providing health insurance to their employees. These credits can be as high as 35% in 2014 and 50% in 2015.

The ACA will affect all business owners next year; click here for information on how to prepare.