FAQ: Does my small business must provide assurance

FAQ: Does my small business must provide assurance - disease

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As a small business owner, you may be wondering, "I need to provide health insurance for employees?" No company a to provide health insurance. However, the Law affordable care includes a mandate for some large employers (with more than 50 full-time equivalent) either offer advantages of skilled and affordable health care, or pay a tax penalty. This is commonly called the mandate of the employer "play or pay" requirement, or the employer shared responsibility

Note :. the mandate of the employer and penalty has been postponed to 2015 for large employers with 100 FTE employees. the mandate of the employer and the penalty was delayed to 2016 for employers with 50-99 FTE employees.

This is important for your business to understand if you are defined as a major employer applied by the IRS, such as the mandate and employer tax penalties only apply to your business if you are an applicable large employer.

less than 50 employees? No warrant or penalties

If your business has fewer than 50 employees, the mandate and the tax penalty not about you .

What is a large employer applicable?

For most companies, this is a simple calculation. However, for border businesses with many employees part-time or seasonal, the calculation will be deeper. In general, if your company employed an average of more than 50 full-time equivalent (FTE) during the previous calendar year, you are considered an important employer for the year in progress.

First, a company is defined as a large employer applies on the basis of the calendar year. For example, you might be an applicable large employer in 2015 but not in 2014. Is your job more than 50 full-time employees business on average during the previous calendar year? If so, then you are a major employer for the applicable calendar year.

Second, your business is not a big employer applies if:

• You used less than 50 full-time employees on average during the previous calendar year, or

• You work more than 50 full-time employees not exceeding 0 days during the preceding calendar year due to seasonal labor .

calculating full-time FTE part-time

in determining whether your business is an important applicable employer, your business must include all full-time employees more full-time equivalent of your part-time employees.

a full-time employee is defined as working on average 30 hours of service per week to one month given. How many full-time employees do you have?

Then factor part-time employees. To calculate the full-time equivalent of part-time employees, one dd the number of hours worked by part-time employees in a given month and divide by 0. How many full-time employees part-time equivalent do you?

Finally, the sum of full-time employees and full-time equivalent of part-time employees is the number used to determine whether your company is an applicable large employer. If the sum is 50 or more, you are a big employer applicable

Worksheet: .. How to calculate FTEs

This is a spreadsheet that describes the calculations below above ETP

now you have determined if you are an important applicable employer, and you know that if you "have" to offer the Medicare in 2015 ... what is? next

Here are more articles of the reform of health care to help your business to decide your health care reform strategy:

• Quick guide for calculating the health insurance business tax penalty

• the solution ObamaCare - An account of business expenses for health care

• Affordable Care Act: Play or Pay

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Editor's note: This article was originally published in May 2013.

What questions do you have? Let us know in the comments below.

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