This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Small Businesses Struggle With Obamacare

Sam Caucci, principal and founder of Sales Huddle Group, a sports sales consulting and training company, also says the delay is positive for small businesses.

While his company is below the 50-employee threshold with 14 employees, "any increase in their operating expenses is a direct effect on the money they spend on training," Caucci says. "It would definitely make us more sensitive to bring on staff."

But other small-business owners fear it's just a political ploy to get the mandate requirements out past the mid-term elections.

"All this does is underscore the lack of planning and the inability of the administration to set any kind of clear planning tools for the small businesses and that's why the economy will continue to chug along at an abysmal pace, because small-business owners like me and others can't really make any plans because what's up today is down tomorrow," says Ed Jerdonek, CEO of Luckett & Farley, an architecture firm based in Louisville, Ky.

The controversial health care law, meant to provide more individuals with affordable health care, requires employers with 50 to 199 full-time workers to either provide health insurance or pay a tax penalty of $2,000 per employee (provided the employee gets subsidized insurance from the government), according to health insurance experts. Businesses with fewer than 50 employees are exempt from the ruling, but self-employed individuals will be required to purchase insurance, or else pay a tax of as much as 2.5% of household income.

Observers say the law also serves as a threat to small-business growth. Some small businesses that already provide coverage say the added costs of reporting and rise in health insurance premiums are a potential detriment to investment. For business owners with fewer than 50 employees, some are already holding back from hiring extra workers for fear of going over the 50-employee threshold.

Luckett & Fairley is an example of a company that already offers health insurance and benefits to its 80 employees, but The Affordable Care Act will impede on its ability to do small acquisitions it may have otherwise have made.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,283.28 +17.29 0.10%
S&P 500 2,010.80 -0.56 -0.03%
NASDAQ 4,575.72 -17.7050 -0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs