Here’s How Certain ACA Provisions Affect Employers with less than 50 employees
The Internal Revenue Service (IRS) has provided a reminder of key provisions of the Affordable Care Act (ACA) which may or may not apply:
- “Pay or Play” Provisions Do Not Apply: If an employer has fewer than 50 full-time employees, including full-time equivalent employees (FTEs), on average during the prior year (calendar basis), the employer is not considered an applicable large employer (ALE) for the current calendar year and is therefore not subject to the ACA’s employer shared responsibility provisions for the current year. Calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates throughout the year.
- Information Reporting Requirements Could Apply: Employers that provide self-insured health coverage (regardless if you have under or over 50 employees) must report information for individuals they cover. These employers should have provided the 2015 Forms 1095-B to their employees by March 31, 2016. The deadline for sending Forms 1094-B and 1095-B to the IRS is May 31, 2016.
- Small Business Health Options Program May Be Available: Employers with 50 or fewer employees can purchase health insurance coverage for their employees through the Small Business Health Options Program–better known as the SHOP Marketplace–if they meet certain eligibility requirements. However, each year you must renew your plan and all employees must have marketplace accounts and emails.
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