If you're a business owner pay attention. It's time for the small business financial show. With a small business tax consultant and professor and lecturer. Comfort -- -- split comfort give you the knowledge you need to increase profits and grow your business now. Here's your host comfort should dance. Hello everyone welcome to small business and financial I -- your host country dance. Continue as a small business owner find success in business. You can listen to previous broadcasts of our program that top thirteen seven. And you can find practical insightful information for your business at our website which is SM BIZ financial dot com. Reality is if there are so many small business owners who do not have health insurance. And many of you who are covered -- are probably covered under your spouse's insurance who is working as an employee each of another company. For those of you small business owners who do not have any insurance at all may be Euro single parent. A freelance writer and independent contractor. Pretty much self employed. You perhaps have tried to get some kind of insurance but it was too costly or you just. Do not know where to even began or what options are available for you while. In today's episode I am going to give you some guidance on some choices you have up there to help you with your insurance needs. But as with everything else you want to -- deeper and do some research for yourself. Because everyone's situation is unique and what I'm sharing with Q is general in nature. I have been axed about the health insurance issue. A few times so I am hoping that you'll take this information as a springboard to head in the right direction. The first being I have here to discuss its the Affordable Care Act. Popularly known as a bomb went here. I'm not going to discuss it from political -- points. I feel like my job that small you know my responsibility here at small business financial -- to share. I'm with you small business owners what your choices are and that's pretty much what we're gonna be doing today. So right now owned in our country we have something that's no lunacy affordable. Eric care act but actually passed. So the Affordable Care Act was supposedly signed into law. To reform the health care industry. Up by president Barack Obama on March 23. 2010 and upheld by the Supreme Court on June 28 at 2012. Now as of January 1. When he fourteen. Most people were required to have a basic level of health coverage. Depending on their -- -- and some want her exemptions that SS. So as a small business owner unless you have some extreme special situation. Recognized by the government you are now required -- to have health. Coverage or it got to face opponent. Now the Affordable Care Act goal is supposedly. To give more Americans access to affordable quality health insurance. And to reduce the growth. In health care spending in the US. Currently open enrollment is over. It ended march 31. But there are some special cases that will permit you to move forward with getting coverage. Despite the fact that -- enrollment period is over. To get coverage right now -- some of the special cases include. Marriage birth or adoption. A move outside your service area loss of health coverage. And if fuel are applying for a beat out Medicaid or chip which is the Children's Health Insurance Program. So depending on your circumstances you may be able to enroll immediately. If you miss the open enrollment -- period and you do not qualify. For any of the special cases then you'll have to. You have another opportunity as of November 15 of this year. Okay. Now some states opted to offer coverage through a state health insurance exchange. And some states did not. Texas currently is not offering a health insurance exchange. So that Texas health insurance exchange is a red centrally by the health and human service departments. I have been axed by if you -- employ people if they can apply if Texas is not running health insurance exchange. The answer is yeah. Now if there are few things about Affordable Care Act and getting insurance as small business owners that I think you should now. If you are you know by federal definition a small business. What this actually means body. Federal definition as a small business that means you have employees. These are people who you hired to work in your company. Full time. And they will be receiving a W two at tax time. We're not talking about contract laborers who are the people you bring and on a contract basis. You know people who did you know these are people who don't need supervision and you do not tell them when and how to do their work. We are talking about people you supervise in some capacity. And the Internal Revenue Service if you go to their website they've got a clearer definition of who is. An independent contractor and who is considered an employee -- Something else to keep in mind is the definition of the term full employee. Under the Affordable Care Act which in this case means an employee heat. Who is employee on an average. Of at least thirty. Hours of service times per week over and over a given month. So. Or your staff members that work between 25 to thirty hours some weeks and it. Forty or more hours -- busy times you'll have to look back to determine if they have rich. Area hours hopefully. You're using a payroll company. So this one you know will be one less issue for you to worry about. But you do need to be aware. What's going on ads ultimate responsibility lies with the business owner -- specially with compliance issues. -- according to health care -- up acts the federal website where you can get more information. About the Affordable Care Act. Businesses with fifty or fewer employees. Are required to offer health coverage. Employers. With fifty or fewer full time equivalent employees don't face a penalty. Or not offering health coverage. Now. That's currently now if you choose to offer help insurance. The health care dot -- states. Are states that businesses with big. Are fewer full time equivalent. Employees can use the small business health options program. Which you'll see the on average he shouldn't shock. So it stands for the small business health option program. Now you can use that you offer coverage to. On your employees and their supplies also it's not for profit organizations as well. You control the coverage you offer and how much you pay towards premium costs. There's a lot of information. But I am offering. And there's a lot more. -- health information. On the site that is necessary. You know beyond what I'm sharing with you right now that you need to know but. And you know our show was limited time so I can't cover everything. Now I want to address. The V comment or statement that -- previously. I'm making reference to the full time equivalent what that means. Now. You'll see it abbreviated FTE. Which is full time equivalent this represents your part time employees whose hours at -- up. To more than thirty. Hours or more. It could also be a combination of all time and part time employees but that also averages out to thirty hours each right. So I wanted to understand though that. As you might be thinking that's. Seasonal employees contractors. In US a small business owner do not count towards that total. Here's a couple of facts. Actually. It's not a complete list. And like I mentioned before can't possibly go over everything in one episode there's a lot of information so I will encourage you to please go to the health care dot gov. If you want to find out more. About the Affordable Care Act in what. Other options you know what what you have. I'm available to you as a small business owner. Now here are some of those other acts. Small businesses with fewer than 25. Full time equivalent employees. With average annual wages below 50000 can get a tax credit to help paid or employee premiums. Now the tax credits are retro attractive cents any chance he can still claim your health insurance tax credit. Or any year since 2010 retro active means that you can go back. So -- currently in 2014 you can go back. Small businesses with more than a hundred full time equivalent employees would. Average annual wages above 250000. Must provide coverage. See full time employees. Com 2015. Which is also known as the employer mandates. Now. Starting in 2016. Employers with. -- between fifty and 99. Full time equivalent employees. Will have to insure it -- the air full time work force as well. And it's starting spot next June 2015. Any business. Who is. Supposed to insurance full time workers this does not will have to make a 2000 dollar penalty payments. On the year year -- federal income taxes. OK so these are just some really really important basic information that I think. Is important for you to know about while all right. You are listening to small business financial here on top thirteen seven. We are going to take a break. But. Please stay tuned because I have more to share with you and now health insurance. More small business -- Yeah. -- for you small business owner looking for answers to help you solve your business challenges like port access funding for your business seeking help understanding. Flat tax issues what to do to be a profitable business well look no further. Visit the small business financial website at SM BIC financial. Or you can learn about upcoming workshops networking events and get lots of free information again go to small business financial's website -- SM BIC financial. -- Easy to welcome back to the small business financial shows once again. Here's your host comfort should that it's. Welcome back everyone. You are listening to small business financial. I am your host comforts advance helping you as a small business owner find success in the business. You can listen to previous broadcasts of our program -- top thirteen seven. And you can find practical insightful information. For your business at our website which is. SM DI easy financial dot com. If you are a small business owner you probably have questions about health insurance. Before the break I was sharing with you information about the Affordable Care Act. And that we are going that's where we're going to pick up from. I shared previously. About the small businesses with employee eats. Now let's look at small businesses with no employees. Now small businesses with no employees. These aren't the truly self employed. Meaning so for partners. Or independent contractors. You work for yourself. And you have no employees. A few contract laborers every now and then but it's no employees. In this case here consider an individual. And will have to pay for coverage under it be individuals. And families options. When you actually go to health care dot gov to either or explore. And I'll give you better instructions on -- either explore or to sign up for coverage. You can I use the individual market place. To find coverage that fits your -- If you. Can afford health insurance but you choose not to buy it. You must pay if -- And this fee which is a penalty is called the individual that individual shared responsibility. Payments to BC it is just. You know another name for penalty. The -- and Tony fourteen meaning this year is 1%. A -- yearly income or 95 dollars per person. For the year which ever is -- year. The -- supposed to increase every year and end when he sixteen it is set to be. At 2.5. Percent of your income or 695. Dollars per person. Which ever is higher. Now as I mentioned previously I'm just going to give you acts I am here to help it was small business owners so. I would not give any views in terms of political views as she might opinions on this but I want you to know what you have available to you. As an option. OK. So. When you you will make that you know. Penalty payment when you file your taxes. So come -- 2015. You know when your taxes are due. On April -- when he fifteen. As -- so for partners or independent contractors. When you found that when he fourteen. Tax next year tax return next year. If you have a penalty that's when you'll make back payments. Now for our young entrepreneur orders. There's something called you know the there's there's the extend that spend it or extend dependent coverage. And this will allow you to go up to age 260. You know you can stay on your parents' plan until age 26 if you're already covered. Body of your appearance on that you know medical plan already. I also want to bring to your attention that you may not. Have to pay a penalty if you qualify for the exemptions. And there's a standard exemption. And what's known as a hardship exemption. To avoid the penalty you need. Insurance that qualifies adds quote unquote minimum essential coverage. If you happen to be covered in another way. Here is a brief listing of what the government considers covered and you don't have to pay a penalty sentence gonna give you a brief. Listing of them this is not everything. It any market -- plan or any individual insurance plan you already half. Any employer plan including cobra and I'm gonna share -- Houston three things about cobra a little bit on in the later on in the show. And with the -- if it includes. And with or without grandfather it's status. This also includes a retiree plan. On Medicare Medicaid. The arm chip which is the Children's Health Insurance Program. And god we got -- here which four current service members and military retirees their families and survivors. Veterans health care program including the veterans' health care. Program. DA civilian health and medical program. And not spine of -- at a health care benefits program. Peace corps volunteer plans as well and I mentioned before it would just give your brief listing so you kind of have some idea. Of you know what your situation is gonna be looking like if you happen to need coverage. So I went on to the health care dot gov and I did a little -- exploring off my -- In Texas if you and your spouse. Are self employee. Within an estimated in kind of 50000. You are illegible for help paying your coverage improbably eligible for eight premium tax credit. When I estimated income at 75000. Dollars with the same scenario the couple did not qualify for help. So what does getting help me. It means you qualify for reduced premiums and reduce cost sharing through the health insurance marketplaces. What about that term premium tax credit while. This means that you may get a tax credit she used towards. The cost the pain or upright that health plan that you purchased through the marketplace. Keep in mind. Tax credit means. You file your tax return. You indicate -- you purchase insurance through the marketplace. And you may get a refundable credit assuming. You are getting you what. What you're out -- taxes. Are less than what you you know that the refund I should say that your getting back. On exceeds. You know attacks that you know that's how you wind up with a refundable credit so. Now if you -- Or. An advance payment of the tax credit the government will send the money directly to your health insurance company on your behalf so you will not get the money directly. On and your health insurer will have to credit that many tourists and be our cost of your health insurance premium. On the which will actually decrease how much you'll. -- have to pay each month. I'm now to explore further about this simply go to health care dot gov click on learn. If you are small business owner with no employees. -- for example or so -- partner independent contractor -- talked about that before you have to make sure you understand. Which category you fall -- as a small business owner. So the independent contractor or so -- partner. Is self employee eat right so. In this case you would click on individuals and families because you have no employees. If you how to employ use as a small business owner then you wanna click on small businesses. There is a green button there that says see if you know you can get coverage so you -- click on data begins explorer and you know NC. What your scenario might turn out like -- turn out to be. To actually apply for the coverage on the health care dot gov site you want a select get insurance. So at the top you'll see auctioneer that says get insurance. On you'll have to create an account answer some questions. You know. And -- you know before you were able to move forward. Now that's B. Affordable Care Act. Now what about some other health coverage I'm options for you what's out there well you know for small business owners. I mean. One option that you. You know may wanna think about let's see if you or are you or your spouse is considering making that big move to become a fool. You know time. Business owners so that you can focus on growing your business. You may want to consider taking what's known as cobra. -- you've probably seen it before CO BER eight cobra. -- which means consolidated. Omnibus budget reconciliation act. On its offered through your employer. It can buy you some time while you search for something more affordable as it is expensive. Especially when looking at you know family rates. Under corporate you're entitled to continue to purchase health insurance for -- Former employer upped to eighteen month. Just keep in mind that you may lose any contributions to your employer made it to the plan while you were an employee. And perhaps additional fees that your employer was responsible for. Now if -- if you absolutely cannot afford you know cobra insurance. You do have the option of purchasing -- short term. Or in term insurance to hold you over until you find the right policy for your budget in your medical needs. The short term our interim insurance policies typically offer coverage. For six months. A two year. Our rights. Another option. You've probably heard of it before it time and time again is the health savings account you can participate in the health savings accounts. Which requires you to make monetary contributions to pay for health you know -- health care expenses. You may have to purchase. High deductible. But -- health premium. -- policy and it is my understanding that that the bulls can range anywhere from a thousand. The 5000 for individuals and up to 101000. Where families. -- EU all pluses for the health savings account include that you know. The contributions are tax deductible B and use funds roll over from year to year. The interest aren't on the health savings account are not -- and neither. Are your withdrawals tax because you will be using them to pay for medical expenses. While all that's all I've got -- today. I am quite sure. That. You know you'll find these options to be very very beneficial I just think you need to dig a little deeper. And to find out what's gonna work for your unique situation. OK. While we come to the end of our show. I hope this has been helpful to every one. And I hope you enjoyed this episode a small business financial need you are small business -- -- here for new -- is your questions. I'm -- -- something you would like you're talking about and show please let us know recounts -- west. On FaceBook are actresses FaceBook dot com -- -- small business financial or join the conversation on Twitter. Send us an email to us small business. Texas at gmail.com and of course you can always visit our website -- a small yeah I mean SM BI easy financial dot com. More information because so much for listening and remember to be thankful for the opportunity. That you.