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How are Self Employed and S-Corps affected by the Obama Health Care legislation?

Asked by: bustermcleod 419 views YA Discussion

In regards to self employed people, do the new health care taxes just apply to individuals, or will self employed people face a similar situation to the other self employment taxes where they are paying both the “employee” and “employer” portions of new tax(es).

Any info/references in regards to specific planning S-Corps should be doing for these changes would be appreciated.

How others found here:

  • ppaca self employed s-corp

3 Answers



  1. the kid on Aug 20, 2012 Reply

    Self employed continue to pay both halves.

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  2. Bash Limpbutt's Oozing Cyst© on Aug 20, 2012 Reply

    The health-care taxes in the PPACA apply regardless of how your business is organized.

    Small businesses (under 50 employees if memory serves) will be eligible for tax credits to assist in providing affordable health insurance coverage for their employees.

    Larger businesses that fail to provide affordable health insurance coverage for all employees will be subject to penalty taxes that will be used to subsidize the state insurance exchanges and the expanded Medicaid system for poorer individuals & families.

    Lower income individuals and families will be eligible for refundable credits to assist in paying for health insurance. Very low income individuals and families (generally less than 130% of the poverty level) will be eligible for expanded Medicaid coverage.

    Individuals who have access to affordable health insurance but who fail or refuse to procure insurance will be subject to a tax (1% of AGI) that be used as above.

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  3. tro on Aug 20, 2012 Reply

    have vagulely read any part of the health insurance but what I did read indicated if an individual failed to enlist in some health insurance they would pay $ 90 on their income tax as a penalty
    until the bill is entirely declared constitutional, I am waiting
    self employed pay approx 13.3% of their sch C ‘net’, not 15.3% of 92.35% of the Sch C net, this is not the same as the health insurance in the Obamacare which is supplemental
    you can’t avoid the self employment portion

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