From Chicago to Carlsbad, ACA vexing for the bean counters

Boasting more than 2,000 pages, the Affordable Care Act (ACA) – widely known as “Obamacare” – is a formidable challenge for everyone, from accountants in Atlanta, to bookkeepers in Bakersfield, to Quickbooks consultants in Carlsbad!

Of course, the ACA is intended to provide quality healthcare that all Americans can afford. And the achieve that goal, companies large and small are being required to offer coverage to their employees. Failure to comply carries a healthy penalty, though depending on how many people you employ, the requirements vary. But the bottom line is, it is a numbers game for employers.

Let’s take a look at the various ACA benchmarks that have been established for businesses. 

By the numbers

1-24 Employees: The ACA has a built-in incentive for small business to pay at least half of the cost of health insurance premiums for their employees. Those smaller employers now may be able to claim a tax credit for as much as 50 percent of the cost of those premiums. The benchmark here is based on employee salary levels, with $50,000 set as the individual maximum. The only other requirement is that the company purchase its group coverage through the Small Business Health Options Program (SHOP), a special insurance marketplace established for ACA compliance.

25-49 Employees: Companies with fewer than 50 employees are encouraged to provide insurance for their employees, but there are no penalties for failing to do so. A special marketplace will be available for businesses with 50 or fewer employees, allowing them to buy health insurance through the Small Business Health Options Program (SHOP).

50 or more Employees: Companies with 50 or more full-time employees got a reprieve from thre ACA until this year, 2015. 15. The quick rollout of the ACA put pressure on companies to file information returns with the Internal Revenue Service that detailed what health insurance they provided, complete with penalties if the insurance did not meet standards.

A hue and cry went up from the business community, as they claimed the monumental task of compliance with the informative filing was an unreasonable burden. With business asking for more time to comply, the IRS extended the deadline a year, giving businesses until the end of 2015 to comply.

Of course, the annual penalties for non-compliance could be substantial: $2,000 per uninsured employee, based on a 30-employee threshold. And if the coverage is judged to be “unaffordable” – if its cost exceeds 9.5 percent of the family’s total income – the penalty goes to $3,000 per employee. These penalties apply only if one or more of the company’s employees buy insurance from an exchange and qualify for a federal credit to offset the cost of the premiums.

So there, in a nutshell, you have the challenges presented by the ACA that business now face. Keeping a handle on the changes that most assuredly are still coming as the ACA gets fine-tuned, will be Job One for bookkeepers and accountants across America. Hiring a qualified accountant should be a priority for every business, big and small.

How Not To Drown Your Business in Bookkeeping

It’s very easy for small businesses to get bogged down in details, feeling that wherever they are from Altadena to Carlsbad bookkeeping services may be out of reach. Many enterprises launch themselves into the market throughout Southern California with innovative ideas or services that appeal to customers and clients. But the day to day management of the business details can end up stifling the visionary entrepreneur and sinking the forward motion of the business. What is the small business owner from Carlsbad or Northridge to do when faced with this problem?

Managing Your Bookkeeping

One of the first things any entrepreneur should do, once they’ve expanded beyond a one-person operation, is to consider hiring a business management service. By engaging a trustworthy bookkeeping service, the businessman can be sure that matters will be tracked and taken care of, such as maintaining the payroll for the employees, overseeing the income and expenditures, and even handling the 1099s for the independent contractors that may be used.

Everyone knows that a good business is one that stays on top of its bookkeeping. It is important to make sure that the income exceeds the expenditures. But good bookkeeping is more than just keeping the accounts balanced. It involves tracking regular payments and making sure that the predicted income does indeed come in. Regular expenses have to be tracked as well, to make sure that creditors are paid on time, and service bills in particular are paid when due.

A management service can help the small business with these points. Instead of having a paid staffer who would be giving up precious work time that could have been devoted to your product or service, so that he or she could maintain the business records, a hired management service will take care of all that in an efficient manner. Your workers can devote their energies to the specialties you provide, instead of feeling that they should have taken that accounting class in college.

Selecting a Business Management Company

Finding a suitable management company is not always an easy thing for the start-up business or independent operation. Because small companies are often unique in their products and services, they may not have the type of revenue that would attract the attention of a large management company that handles hundreds of businesses. And there’s also the lack of personal engagement between the business management company and the actual small business.

When you want to feel connected with your business manager, choose a smaller management company where you can be certain you will get much more personal attention. Such smaller bookkeeping services can work with you on developing and pacing your growth, since the management company will be much more aware of your own business rhythms.

When choosing a management service you want to be sure certain services are provided:

• Income and expense accounting
• Tracking daily cash recepits
• Handling Payroll
• Making sure bills are paid
• Preparing the various tax forms
• Making sure 1099s are prepared for independent contractors

Each of these tasks takes time and awareness to be properly handled. Instead of wasting the time of your talented artisan in trying to deal with these chores, a management company will oversee them with a practiced eye for detail.

Online Management Connections

With the growth of the internet, it is no longer necessary for a business management provider to be onsite with your business. Computerized record keeping and secure communication channels are available to allow at-distance maintenance of business records. The advantages for the small business owner in choosing such an arrangement are many.

• No need to devote valuable shop space to the business manager/bookkeeper
• Confidence that the records are well maintained
• Off-site back-up of records in case of emergency
• The benefits of a professional bookkeeper without hiring additional full-time staff

Consider the advantages of getting a business manager. Providers can be found easily when you seek them. White Business Management can deliver the best in such services wherever you are in the Southern California region, from Carlsbad bookkeeping services to payroll management in Los Angeles. Contact us today and discuss your needs with us.