There is a “roundhouse” tax that will come out of nowhere and knock employees on their cans if their employer decides to pay the $2000.00 penalty to the government and allow their employees to buy insurance at the “exchange.”
To begin with, an employer that is paying the health premiums for their employees as part of their benefit pay package will most likely choose to give their employees raises and do away with company insured health care.
Some excerpts from the True Cost blog
Here are some of the employer options with the above variables in play..
If an employer elects to drop coverage and give their employees raises with the money they were spending on health insurance premiums, would that not create more tax revenue for the government as employees are boosted into a higher tax bracket (which is the worst of all worlds)
Keep in mind that the government has been wanting to tax the health benefits people receive from their job site for many moons. With this new Obamacare package coming on line it will give government much need revenue at the expense of the middle class.
The true cost blog continues…
An employer could cancel insurance, saving $10,000 per employee, and then give each employee a $9000 raise. Payroll taxes (7.65%) would add another $688 to this sum, leaving a net profit of $312 per employee if an employer took this approach. Benefits administration expenses would also be eliminated, however, and these savings could be significant. Eliminating a single $40,000 salary HR position at a 200 person company would save another $200 per employee, for instance. So a net profit of over $500 per employee is quite possible – the actual profitability of the move would depend on how much of the health care savings the company chose to pass on in the form of higher wages for its employees
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