03/18/2008
The Senate Health and Human Services Committee will consider Senate Bill 2686, a bill that would mandate an 8 percent payroll tax on ALL Rhode Island employers with more than 10 employees, on Wednesday, March 19.
Employer mandate: SB 2686 is being billed as an 8 percent payroll tax on employers with more than 10 employees who do not provide health insurance for their employees, but the assessment will be universal to all employers (with more than 10 employees) with a full offset for those employers who provide qualified health insurance.
Proponents contend the plan would cost approximately $1,000 per employee, but estimates of the assessment range from $960 to $1,500 per employee. Assessments would go to support coverage for the uninsured. Massachusetts instituted such an assessment as part of their recent healthcare reform initiative, but their assessment is $294 per employee.
The small business community advocates healthcare reform such as allowing small business to band together to negotiate lower premiums; tax-free health savings accounts that use high deductible plans to cover younger workers; lower cost and more affordable health insurance products; and transparency to give consumers information about costs and healthcare.
New payroll taxes are not the answer to making healthcare more affordable for small business.
With the economy already shaky, such an additional cost could not come at a worse time for small employers who are struggling with higher energy costs, unemployment insurance and a significant tax and regulatory burden.
Individual mandate: SB 2686 would also require all persons over the age of 18 whose income exceeds 400 percent of the federal poverty level ($42,840 for individuals and $82,000 for family of four) to have or buy qualified health insurance or forfeit a tax exemption.
Address your letter to The Honorable (Representative's name), c/o Speaker of the House, 323 State House, Providence, RI 02903; and to the Honorable (Senator's name) c/o Senate President's Office, 318 State House, Providence, RI 02903.
Also please send NFIB/Rhode Island a copy of your letter. Find the representative and/or senator in your district.
