AFFORDABLE CARE ACT - BUSINESSES
We will update this page as deadlines are announced and employer requirements become clearer with regards to the Affordable Care Act
Beginning January 1, 2014, individuals and employees of small businesses will have access to affordable coverage through a new competitive private health insurance market – the Health Insurance Marketplace. The Marketplace offers “one-stop shopping” to find and compare private health insurance options.
Open enrollment for health insurance coverage through the Marketplace begins October 1, 2013. Section 1512 of the Affordable Care Act creates a new Fair Labor Standards Act (FLSA) section 18B requiring a notice to employees of coverage options available through the Marketplace
Open enrollment for health insurance coverage through the Marketplace begins October 1, 2013. Section 1512 of the Affordable Care Act creates a new Fair Labor Standards Act (FLSA) section 18B requiring a notice to employees of coverage options available through the Marketplace
How the Health Care Law Affects Aggregated Companies
The Affordable Care Act applies an approach to common ownership that also applies for other tax and employee benefit purposes. This longstanding rule generally treats companies that have a common owner or similar relationship as a single employer. These are aggregated companies. The law combines these companies to determine whether they employ at least 50 full-time employees including full-time equivalents.
If the combined employee total meets the threshold, then each separate company is an applicable large employer. Each company – even those that do not individually meet the threshold – is subject to the employer shared responsibility provisions.
These rules for combining related employers do not determine whether a particular company owes an employer shared responsibility payment or the amount of any payment. The IRS will determine payments separately for each company.
For more information about how the employer shared responsibility provisions may affect your company, see our Questions and Answers on IRS.gov/aca. For details about how to determine if you are an applicable large employer, including the aggregation rules, see Determining If You Are an Applicable Large Employer.
If the combined employee total meets the threshold, then each separate company is an applicable large employer. Each company – even those that do not individually meet the threshold – is subject to the employer shared responsibility provisions.
These rules for combining related employers do not determine whether a particular company owes an employer shared responsibility payment or the amount of any payment. The IRS will determine payments separately for each company.
For more information about how the employer shared responsibility provisions may affect your company, see our Questions and Answers on IRS.gov/aca. For details about how to determine if you are an applicable large employer, including the aggregation rules, see Determining If You Are an Applicable Large Employer.
ALL INFORMATION AND DEADLINES ARE SUBJECT TO CHANGE.
What Do Employers Need To Do For 2013?
For employers with sales over $500,000 you are required to provide employees with information on Health Insurance Marketplace Coverage Options before October 1, 2013.
Employers who offer a health plan to some or all employees should use this notice: FLSA with Plans
Employers who do NOT offer a health plan to any employees should use this notice: FLSA without Plans
What Do Employers Need To Do For 2013?
For employers with sales over $500,000 you are required to provide employees with information on Health Insurance Marketplace Coverage Options before October 1, 2013.
Employers who offer a health plan to some or all employees should use this notice: FLSA with Plans
Employers who do NOT offer a health plan to any employees should use this notice: FLSA without Plans
What Employers Need to Know About the Affordable Care Act
The health care law contains tax provisions that affect employers. The size and structure of a workforce - small or large - helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for employers that have close to 50 employees or whose work force fluctuates during the year
The number of employees an employer has during the current year determines when it is an Applicable Large Employer (ALE) for the following year. ALEs are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents "affordable" coverage that provides a minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.
The number of employees an employer has during the current year determines when it is an Applicable Large Employer (ALE) for the following year. ALEs are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents "affordable" coverage that provides a minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.
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Fewer than 50 Employees
SHOP Marketplace Eligibility
* Employers with fewer than 50 employees can purchase insurance through the Small Business Health Options Program (SHOP) Marketplace. Information Reporting - Self Insured Employers * All employers, regardless of size, that provide self-insured health coverage must file an annual return for individuals they cover, and provide a statement to responsible individuals. * The first information reporting returns are due to filed in 2016 for 2015 Credits * Employers may be eligible for the Small Business Health Care Tax Credit if they: 1. Cover at least 50 percent of employees' premium costs 2. Have fewer than 25 full-time equivalent employees with average annual wages of less than $50,000. 3. Purchase their coverage through the Small Business Health Options Programs. * Employers with fewer than 50 full-time employees for full-time equivalent employees are not subject to the employer shared responsibility provisions. |
Equal to or More than 50 Employees
Applicable Large Employers SHOP Marketplace Eligibility
* Employers with exactly 50 employees can purchase insurance through the Small Business Health Options Program (SHOP) Marketplace. Information Reporting * All employers including applicable large employers that provide self-insured health coverage must file and annual return for individuals they cover, and provide a statement responsible individuals. * Applicable large employers must file an annual return - and provide a statement to each full-time employee - reporting whether they offered health insurance, and if so, what insurance they offered their employees. * The first information reporting returns are due to be filed and furnished in 2016 for 2015. Payments * In general, an applicable large employer will be subject to a payment if the employer does not offer affordable coverage that provides "minimum" value to its full-time employees and their dependents, and one or more full-time employees gets a premium tax credit. * Various forms of transition relief are available for 2015, including for applicable large employers with fewer than 100 full-time employees, including full-time equivalent employees. Full details are available in the transition relief section of the employer shared responsibility questions and answers page. |
Resources for Further Information:
US Department of Labor - Affordable Care Act
Healthcare.Gov
IRS - Affordable Care Act Tax Provisions
SBA - Health Care
US Department of Labor - Affordable Care Act
Healthcare.Gov
IRS - Affordable Care Act Tax Provisions
SBA - Health Care