Over 140,000 New Mexico Small Businesses Brace for New Health Care Reform Law & Home Office Deduction
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Over 140,000 New Mexico Small Businesses Brace for New Health Care Reform Law & Home Office Deduction
National Association for the Self-Employed Releases Guide for NM Small Biz Community on Impact of New Health Care System
WASHINGTON, DC – With enrollment in our nation’s new health care system quickly approaching, 146,962 small businesses across the state of New Mexico are preparing and educating themselves about the impact of the sweeping new health care reform law enacted by Congress last year. Today, in advance of the open enrollment period beginning October 1st, The National Association for the Self-Employed (NASE) , the nation’s leading advocate and resource for the self-employed and micro-businesses released a key guide, the Affordable Care Act in Brief , to educate and help assist New Mexico’s small business community during this transition period. In addition, small businesses will gain a new streamlined home office tax deduction in the 2013 tax-filing season.
“While the new law may provide better and more comprehensive health coverage for many of New Mexico’s smallest businesses, it will come at a significant cost,” said Katie Vlietstra, NASE’s Director of Government Affairs. “Over 140,000 self-employed and micro-businesses throughout the state of New Mexico are bracing for an increase in health care costs coming their way. Our fear is that many of these small businesses will conduct a cost-benefit analysis and decide to pay the penalty because the cost of coverage is just too expensive and they do not qualify for any premium assistance.”
The Affordable Care Act in Brief
NEW MEXICO SMALL BUSINESS FAST FACTS*
· 121,017 self-employed in New Mexico in 2011
· 25,945 micro-businesses in New Mexico (businesses with fewer than 10 employees) in 2010
· $4,586,327 in annual revenue for self-employed in 2011
· $ 2,201,326 in annual revenue for micro-businesses in 2010
A keystone of the ACA is the requirement that new health marketplaces, known as an Exchange, be set up in every state to offer health coverage options to individuals, families and small businesses to meet this new health coverage requirement. The Exchanges will be offered and operated either by a state, a partnership between the state and the Federal Government, or just the Federal Government for those in states who have opted out and will default to the Federal Exchange.
Beginning on January 14, 2014, Americans will be required to purchase health care coverage or pay a penalty. Enrollment in the Exchanges will open on October 1, 2013. In addition to the NASE’s small business health resource center , the government recently re-launched a new website portal for the public to learn more about the new health care law and it’s Exchanges: www.HealthCare.gov .
“Thousands of small business owners that work from home across New Mexico will benefit from a new streamlined tax deduction option when they file their 2013 taxes,” said Keith Hall, NASE National Tax Advisor. “The previous calculation for the deduction was cumbersome and time consuming and year after year, hard-earned dollars were left on the table. These are critical funds that can be absorbed and reinvested for business growth and creating new jobs.”
The new home office deduction option offers a new, simpler way for calculating the home office tax deduction, allowing small business owners and employees who work from home and who maintain a qualifying home office to deduct up to $1,500 per year. The new option allows qualified taxpayers to deduct annually $5 per square foot of home office space on up to 300 square feet, for as much as $1,500 in deductions. To take advantage of the new option, taxpayers will complete a much simpler version of the current 43-line form.
*latest information available from 2010 and 2011 provided by the U.S. Census Bureau Statistics on Nonemployer and U.S. Small Businesses
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