Expert: Arthur Naman - 7/17/2009

Question
Company A, which employs seven people: a manager, an assistant manager, and five workers. The owner pays himself a salary of $70,000 per year (about $35/hour), the manager $52,000 ($25/hour), the assistant manager $35,000 ($20/hour), and the five employees $21,000 (about $10/hour). That makes a payroll of $262,000. The fine may be either 6 percent ($15,720) or 4 percent ($10,480). The lowest total, as you can see, is more than half the salary of one of the worker bees and the higher figure is even worse.  Is this a good example of why not choose the Dems healthcare plan.

Answer
The facts of your scenario have nothing to do with the proposed health care plan. In addition, this is not the forum for such a discussion.

With that said, whether or not a business should be asked to pay for its employees' health insurance is a personal decision; either side can be taken -- both maybe correct or not depending on one's own political beliefs.

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Your question, by its wording suggests a political bent; that is the reason for my response.

Current health insurance rates mean that the lower paid employees' insurance premiums may likely cost 4 - 6% of salary -- whether or not paid by the employee or employer. That is a significant slice of an employer's profits if paid by the employer. So your comment -- that this is a reason to not choose the Democrat's solution is correct.

However, doing nothing, as the Republican's general option is no better. As health insurance costs continue to increase and individuals go "bare," the cost to the public will be increase significantly.

The solution will have to be an increase in taxes -- call them income taxes, sales taxes, VAT taxes, tolls and other fees -- taxes will have to increase to cover those who choose not to pay for health insurance or simply cannot pay. Whether or not employers will have to pay is a political question, not an accounting question.

There is no way to cover the uninsured without all of us having to pay additional in some way.

My point remains, this forum is a place for bookkeeping, accounting and pension issues which your question is not.