Small Businesses Eye Obamacare's 50-Employee Threshold

Suddenly, growth becomes unattractive

A 2011 NFIB study found that the health increased health costs due to the new insurance premium tax that begins in 2014 could reduce future private sector employment by 125,000 jobs during the next 19 years, with well over half of those jobs at small businesses.

On top of the new taxes, Kevin Kuhlman, an NFIB manager of legislative affairs, said the employer mandate will drastically impact growth plans for small firms that don't already offer insurance.

"There are no good options for these businesses that are at or near that 50 employee threshold," Kuhlman explained. "They either have to reduce hours, prevent growth and expansion, or move to a more temporary workforce. None of these choices are good."