Another ObamaCare Tax That’s Confusing (And Hurting) Small Business

The ObamaCare confusion continues.

The Morning Call reports that a new tax on businesses hidden in ObamaCare is phasing into affect this week – and, believe it or not, it’s complex.

The small, $1 per-employee tax is levied on businesses that self-insure or offer other health benefits. But the runaway regulations, delays, and changing rules that have become a daily feature of ObamaCare are making it complicated. It also means more paperwork to file for the IRS – and for small businesses, that’s hardly trivial.

“Even within those regulations, there is uncertainty, said Aaron Newman of Aaron Newman Insurance in Nazareth. Federal guidelines, he said, are unclear if businesses pay the tax on only their employees who use Flexible Spending Arrangements or also on their covered family members. In addition, the FSA tax only kicks in when employers contribute more than $500 to their employees’ benefits, Hughes added.

“The frequent changes to the law and amendments to the regulations don’t help, Newman said.

‘”It’s changing so damn quickly, so unless you’re really into this, you’re not aware of it,’ he said.

Newman also said he’s concerned some brokers and employers aren’t aware of the looming tax deadline. ‘I’m finding out that those clients who have accounting firms that … are not keyed into health reform, they just don’t know.'” 

More hidden taxes? More paperwork to file with the IRS? More confusion? That’s ObamaCare.