Posted on 12/25/2009 8:17:56 AM PST by CapnJack
What can employers across the country, big and small, do to avoid much of the costs of the new Obamacare legislation?
There has been talk about converting employees to contractors. But there are pitfalls to doing this as outlined by this site: http://www.contingentlaw.com/Costly_legal_myths_in_contract.htm
What can employees do to avoid costs (or even protest) this new monstrosity being forced upon them?
If you are a business owner, what are some plans you might inact to reduce the costs and emilinate or minimize any penalties that will come with this legislation?
That’s easy. Move to Nebraska. Since the sell out Ben Nelson got an exemption for everyone in his state I can’t see what will stop businesses from moving there in droves. I foresee most new businesses and many old ones moving there just for that reason. Also anyone who is self employed or work at home will also be wise to do so. I hope the people of Nebraska are ready to give up their slow pace lifestyle for the hustle bustle of a growing population and all the crime and other problems that go with it.
It is just giving you some things to think about if you (an employer) is planning to convert employees to contractors.
Since there are a lot of pitfalls to this process it seems the gov’t has employers over a barrel.
I would assume that it would be best to begin “contracting” people instead of hiring them.
I would also think that a larger company might break themselves up into small independent companies so that the worker limits would be below gov’t thresholds and avoid some of the new fines.
Thats is the ticket. Break your business into smaller companies with less employees in each company.
The rigid labor laws are a major factor in limiting the recovery. The employee/contractor laws have been a problem for some time but this recession is highlighting their destructive effects. The rats have substantially increased the cost of employment in a variety of ways. With reasonable freedom to choose your status, many individuals could become contractors. I understand that many individuals would prefer to be employees but being a contractor beats the food bank. You can still be a contractor but the rules are so strict that many companies prefer to offshore rather than use contractors here.
That is exactly what I plan to do. I do not plan to rehire full time employees I laid off last year.
Do what I did two years ago - close and move overseas. No more US employees or US presence eliminates most of the headaches created and coming. Pretty much any industry can do this, save hands-on service (such as janitorial or construction). Good way to go!
Oh, and a little tip - Hong Kong does NOT tax income of any foreign owned HK company if that income is earned outside the territory of HK. Meaning if you are an HK company and perform services/sell products anywhere outside of HK, that income is essentially tax free. Uncle Sam still wants his share, but at least you can avoid double-taxation. And there are LEGAL ways to defer those taxes a LONG time - there’s a reason most big businesses have significant overseas subsidiaries.
AFIC: all my new employees will be contract temps. As much work as possible will be configured as piecework. As much as possible will be done via the Mechanical Turk, offshore.
I will be happy to employ Americans when I am not punished for doing so. Meanwhile, this is my way of going on General Strike. People who object should help me to change the Regime.
I hope every stupid lib who were out there jumping up and down for Obama and health care reform loses their job and everything they own.
It is simply easier to cancel all health insurance, pay the 8% fine, and be done with it
I don’t really think they have any idea what is about to come at them. Business owners are fed up and many of them have more than enough to retire. They’ll just close up shop and all those idiots with Obama stickers on their cars will join the ranks of the unemployed.
You can not find a full time job in Kona. Most locals work two or three part time.
Don’t hire any entry level or recent college grads. Only hire highly skilled and experienced workers who have motivation, drive and ability.
That’s what most folks will do - wait ‘til the carnage of the Obama generation works itself out with a lost decade for the young dopes who voted in droves for hope/change.
Do we really know what is in the bill? My son has 15 employees and is already bleeding from the medical insurance he provides for them and the younger ones could care less. At my age I’m more concerned about the level of service I receive and will drug companies continue to bring new drugs to market and will medial devices continue to improve for the family that follows me...
I work for a small medical devices company on the north shore of Mass.
I was talking to the comptroller of the company on Wednesday and asked jokingly if he has set up the G/L account on the SAP software system for the new 5% revenue tax on medical devices with this new Obamination healthcare bill.
He said not yet, but will as soon as the bill passes.
That will be about $2.5 million from our small company (approx $50 million in revenues / year).
He said the company will probably have to drop a few new products we have been working on and layoff the people in those projects. We'll just be focusing on our existing products and hope to get the couple of products we have going through FDA approval, online as soon as possible ... else these too will be hit due to the new tax.
“I’ve heard there are some size limitations. Keep the number of employees below the critical number (10 I think) and the garbage doesn’t kick in.”
That might be an effective short term strategy, but they can always pass cardcheck and then maybe not even that will help.
I haven’t looked at the tax structure in either of the bills. But I did find a spot in Scary Reid’s amendment where employers can provide basic catatstrophic insurance plan and provide a voucher so employees can purchase a supplemental plan on their own if they need more than that. In that case, the payroll taxes will still have to be paid, but getting it down to the basics on the part of the employer might offset the total cost by not being involved in myriad of plans, choices, and administration of them that have been traditionally made on behalf of employees.
It’s hard to be optimistic in the face of such tyranny and arrogance on behalf of our political system. I can see this voucher thing as having a good chance of becoming the norm, and perhaps a silver lining to all of the other really bad stuff that comes with it.
Either way, this bill is very bad, jobs and businesses will be destroyed because of it and that is never something that should be forced nor celebrated by anyone.
I am going to not hire more than 5 employees at my plant, we have 10 concrete mixers but rarely use more than 4-5 in the last couple of years.
This is going to cause a catastrophic amount of lost jobs across America.
Employers will divide their company into smaller downsized outfits, they will charge more and pay less wages.
The solution is simple. Move out of the country.
The taxes kick in in 2010 but most companies have already made their plan changes. No time to plan or organize so I’m guessing we’ll get screwed. Big companies probably won’t be impacted all that much. I’ve already told my folks they should expect some changes.
the ‘good’ news is demand will be down so you won’t need as many employees.
I wonder what dem congressmen would think reading these comments.
Would they be so blinded by partisan politics or the idea of creating a larger dependent class it wouldn’t faze them?
Or would they realize the destruction they are about to foist on the country. At least consider this?
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