New Health Care Employer Tax

New Health Care Employer Tax

The Baker administration has proposed a new $2000 tax per “uninsured” worker on employers. It has been widely reported that the tax is only on employers who do not offer health insurance. That description is not accurate.

Who is impacted by Baker Tax:
• Companies with 11 or more workers who fail to insure at least 80% of their full-time equivalents (FTE’s).
• Companies that do not contribute at least $4950 annually to an employee’s insurance coverage.
• Companies that do not pay at least 60% of premiums.
• Companies that do not cover 80% of FTE’s (which includes full and part-time workers).

It is important to note that your employees who are insured from a spouse’s plan at work, a parent’s plan, Medicare, or a veterans’ plan are counted as uninsured for purposes of determining the assessment on your company. Unless the budget language proposed by the Baker administration is altered in the legislative process, this new tax will be assessed against thousands of responsible employers who offer insurance to their workers and whose workers do not access state subsidized insurance.

The cost of health care is the problem that needs to be solved. Small business owners need affordable plans to offer to workers to reduce pressure on state subsidized plans. A simple rule preventing workers from accessing state subsidized plans when they have access to health insurance at work would also go a long way to solving the problem.

If the tax fails to produce the large amount of revenue to the state that is anticipated, the state may amend the plan to include smaller companies in the tax scheme, such as assessing companies with say 5 FTE’s or more instead of 11 or more.

We urge you to contact your legislator and the Baker administration to tell them that the Baker tax on employers is unfair and will have dire economic impact on your small business!

Rep. Susan Williams Gifford, susan.gifford@mahouse.gov
Rep. David Vieira, david.vieira@mahouse.gov
Rep. Matt Muratore, mathew.muratore@mahouse.gov
Sen. Mark Pacheco, mark.pacheco@masenate.gov
Sen. Vinny DeMacedo, vinny.demacedo@masenate.gov

Author: Mashpee Chamber of Commerce

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