Health Care & Small Business

January 20, 2015 | Management Tips, Tax Advice |

market place
The Affordable Care Act means big changes for your small business. We at Franty & Company want to make sure you’re prepared for the new health care requirements.

Self-Employed:

  • Eligible to purchase health insurance coverage through the Individual Health Insurance Marketplace
  • Individual Shared Responsibility (ISR) provision of the ACA requires each individual in a household to hold minimum essential coverage, qualify for an exemption or pay a penalty when filing the federal income tax return

Employers with Fewer than 25 Employees:

  • Small Business Health Care Tax Credit assists businesses with less than 25 full-time equivalent (FTE) employees, who are paid an average annual wage below $50,000, and that contribute 50% or more toward employee’s self-only health insurance premiums
  • Small Business Health Options Program (SHOP) is open to employers with up to 50 FTE and offers small businesses more purchasing power
  • All employers must provide notification to employees about the Health Insurance Market place, regardless of enrollment status or part-time/full-time status. Model Notice for Employers Offering Health Plans
  • Employers are required to disclose the Summary of Benefits Template to all employees

Employers with up to 50 Employees:

  • Small Business Health Options Program (SHOP) is open to employers with up to 50 FTE and offers small businesses more purchasing power
  • Small Business Health Options Program (SHOP) is open to employers with up to 50 FTE and offers small businesses more purchasing power
  • All employers must provide notification to employees about the Health Insurance Market place, regardless of enrollment status or part-time/full-time status. Model Notice for Employers Offering Health Plans
  • Employers are required to disclose the Summary of Benefits Template e to all employees

Employers with more than 50 Employees:

  • All employers must provide notification to employees about the Health Insurance Market place, regardless of enrollment status or part-time/full-time status. Model Notice for Employers Offering Health Plans
  • Employers are required to disclose the Summary of Benefits Template  to all employees
  • Employers with 100 or more FTEs that do not offer health insurance to their FTEs and dependents may be required to pay an assessment if at least one of their FTE receives a premium tax credit purchase coverage on the Individual Health Insurance Marketplace. This Employer Shared Responsibility Provision will apply to employers with 50-100 employees in 2016.

What else can you do to keep health care costs down at your small business?

  • Promote a healthy lifestyle for your employees by encouraging healthy eating and exercise
  • Encourage employees to use pedometers and offer incentives for the most steps taken in a week
  • Provide fruits, nuts and other healthy snacks in the break room
  • Make healthy living FUN by hosting a wellness competition in the office. We’re playing Health & Wellness Bingo to keep our staff on track to stay healthy in Tax Season!
  • For recipes and healthy living tips, check out Ellen’s blog: http://www.ellenfranty.com/

Employers may deduct the expenses related to employer-provided wellness programs as a business expense. Please note that employers offering taxable wellness incentives, such as cash and gift cards, must be reported on the employees’ Form W-2 and withhold payroll taxes on these amounts.

Contact us at Franty & Company with any of your ACA questions!

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