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Obama’s Affordable Care Act assesses a $3,000 penalty onto employers for each employee working over 30 hours per week without an “ACA Compliant” health care benefits plan.
A simple spreadsheet from any CPA will tell employers that the new work-week will now be 29 hours to avoid (but not evade) the Obama Affordable Care Act tax.
Workers previously earning $7.25 per hour for 40 hours per week would cost their employers $18,080 per year, to take home $15,080, before tax. The ACA tax represents a 20% increase in cost to their employer from $7.25 to $8.69 per hour.
Instead of paying the ACA tax, workers’ hours will be reduced.
Those now working 40 hours and earning $7.25 per hour will now work 29 hours per week and have a 28% decrease in their annual pay from $18,0850 to $10,933. Although twice as many people may be employed, these poverty-level wages will become the “new normal”.
Workers who previously worked 58 hours per week and earned $35,045 per year with overtime will see their wages drop by 60% to $10.933.
Employers will just re-define their work hours: 7 four hour shifts per week, or 4 seven hour shifts per week to make this work to keep paid hours under 30.
And they will.
Working Americans will be reduced to poverty-level wages under Obama’s ACA.
Free healthcare is not “Free”. Obama’s ACA carries a hideous cost to America’s workers.
[...] Are Easier to Please Posted on October 9, 2012 7:07 pm by Bill Quick Any CPA with a Spreadsheet Can Confirm This: Obama’s ACA Will Put the Middle Class Into Povert… Obama’s Affordable Care Act assesses a $3,000 penalty onto employers for each employee [...]
Any dunce could see this coming. Oh, never mind. We have the New Pitchforks.
It’s already starting: Darden tests limiting worker hours as health-care changes loom.
Darden Restaurants is an Orlando-based owner of Olive Gardens, Red Lobsters and LongHorn Steakhouses. This isn’t surprising, since food service is an area where employees are already underpaid and have to rely on tips to make a livable wage.
[...] Hourly folks may get cut to 29 hours a week, thanks to Obamacare. [...]