ACA Requirements for ALL Small Businesses
I have heard many business owners ask, “Because I don’t have 50 employees there are no requirements for me under the Affordable Care Act, right?”
The answer is a very simple NOT RIGHT. The Affordable Care Act (ACA) has requirements for ALL business sizes. Some of the requirements you have heard about – but some you probably haven’t. After six years of this healthcare law, you’d think you’d know…
Requirement to Offer Group Health Insurance (50+ FTE only):
Small businesses with 50 or more Full Time Equivalent (FTE) employees must offer an acceptable group plan or be subject to the Employer Shared Responsibility Payment. Businesses with fewer than 50 FTE do not have the same requirements nor are they subject to the penalty payments.
WHETHER YOU OFFER GROUP HEALTH INSURANCE OR NOT, and regardless of the number of employees, if your business does more than $500K of volume, then you are subject to this requirement. The Department of Labor (DOL) expects that you will provide these notices, annually, to all employees hired.
After October 2013 the notices are designed to inform employees about the existence of the Marketplace, notify employees if the group plan meets the minimum standard, and explain how the employer contribution and the governmental subsidy may offset each other.
The DOL has released two model notices on their website:
Employers NOT OFFERING a group health insurance plan.
Employers OFFERING a group health insurance plan.
Employers are invited to use the model notices or use their own, as long as they meet the requirements listed on the DOL website. Staying on top of all things ACA is not so easy. Make sure you have a partner that knows the ins and outs of small businesses.
Marcus Newman, RHU, CBC
Small Business Benefits Consulting