FAQ - Is Our Small Business be penalized for health insurance does not offer

FAQ - Is Our Small Business be penalized for health insurance does not offer -

[1945009?] Editor's note: This article was updated with the latest guidelines of the health reform. The article was published on August 12, 2014.

If you're like most small business owners, you still have questions about how Care Act affordable (ACA or Obamacare) of your business impacts, especially if you will be penalized for not offering health insurance.

In this article, we will address common issues for small businesses from the obligation to provide health insurance and related reporting requirements.

Are we required to offer health insurance?

No. If your business has fewer than 50 full-time equivalent (FTE), then you are not mandated to provide health insurance under the ACA.

Will We be penalized for not offering insurance?

No. If your business has fewer than 50 FTE employees, then there is no tax penalties and not the "employer share the cost of liability" for not offering health insurance.

How do I calculate our FTE employees?

There are three steps to calculate the FTE employees you have:

1. calculate the number of full-time employees. A full-time employee works an average of 30 hours per week in a given month.

2. Factor in your part-time employees. To calculate FTEs for part-time employees, add the number of hours worked by part-time employees in a given month. Divide the total number of 0.

3. Add all full-time employees and FTEs for part-time employees. If the sum is greater than 50, you are a "big applicable employer." This means that the employer mandate applies to your company.

Source: affordable care Act 101 Guide

And if our business grows to more than 50 FTE employees

companies with more than 50 FTE employees that do not provide minimum, affordable health insurance will be required to pay tax on the employer's responsibility to share if / when an employee buys individual insurance and receives a tax credit on premiums.

relief transition However, it has been available for some employers with 50-99 FTE employees.

for 2015, the tax on the shared employer liability is equal to the number 'full-time employees for the month (less than 80) multiplied by 1/12 of $ 2,000.

in 2016, the employer costs of shared responsibility is equal to the number of full-time employees for the month (30) multiplied by 1/12 of $ 2,000.

What are the advantages of the new health Reporting Requirements?

While small businesses are exempt from the employer to share the cost of liability and requirements for large employers applicable reports, there are new requirements for reporting that may apply to your small business depending on the number of employees you have and the type of health benefits you offer. For example:

• New W-2 Reporting Requirements: If you have more than 250 W-2 employees, you must report the cost of group health coverage sponsored by the employer W-2 forms from your employees

• PCORI / CER plan costs :. If you offer a health care reimbursement scheme (HRP) of another self-insured health plan, you are required to pay the Patient-Centered Outcomes Research Institute (PCORI) costs. These are research costs that is paid on an annual basis and is touring with a form 720.

For more information on the changes of reports or plans necessary to comply ACA, download the Affordable Care Act 101 Guide for small business.

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