Author: Jacob D. Favaro, CPA, CFP®, Tax Senior Manager
A recent survey distributed to manufacturing businesses indicated over 50 percent of respondents were not prepared or were uncertain of their company’s plan to implement provisions of the Affordable Care Act beginning in 2014.
Those worries can be put on hold for another year, as the Obama administration has said it would delay enforcing the employer mandate and reporting requirements until January 2015.
The National Association of Manufacturers (NAM) and IndustryWeek recently polled 317 manufacturers in a variety of industries and various sizes. Results of the survey show that manufacturers are increasingly concerned with rising health care and insurance costs. Manufacturers also believe that taxes and regulation are leading to an unfavorable business climate. Additionally, over 50 percent of respondents noted that they were not prepared or were uncertain of their companies plan to implement provisions of the Affordable Care Act beginning in 2014.
Key survey findings include the following:
- 82.2 percent of manufacturers identified rising health care and insurance costs as their top challenge, an increase from 74.0 percent in the previous survey
- 66.9 percent identified the unfavorable business climate due to taxes and regulation as an important challenge
- 66.9 percent listed uncertainties related to the political climate as a top concern
NAM Chief Economist Chad Moutray says, “This quarter’s survey shows that manufacturers need solutions and certainty as concerns about rising health care costs climb and taxes and regulation remain a top challenge for growth. Job growth in manufacturing remains stagnant as the sector lost 8,000 jobs in May. To see strong manufacturing growth in the second half of 2013, Washington needs to act on policies addressing manufacturers’ top challenges to reduce uncertainty and help our nation better compete globally.”
Questions about preparing your business for the tax changes? Contact your Keiter representative or Jacob Favaro.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.