Affordable Care Act for Employers


Depending on the size of business, employers have different obligations and opportunities under the Affordable Care Act.
Large Employers: Employers with 50 or more full time equivalent employees are considered large employers. Large employers must provide health coverage to employees that is affordable (cannot cost more than 9.5% of the employee’s income), and adequate (must pay for at least 60% of covered healthcare expenses. If affordable and adequate coverage is not provided, the employer may face a penalty. The penalty has been delayed until 2015. 
Small Employers: Employers with under 50 full time equivalent employees are considered small employers. Small employers can utilize the Small Employer Health Options Program (SHOP). SHOP is designed to assist small employers provide health plans to their employees. Employers buying employee insurance through SHOP may qualify for a tax credit. Online SHOP enrollment will not be available until 2015. 2014 SHOP enrollment must be completed through a producer or insurer.


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