health coverage

January 21, 2013

Health Care Reform (ACA)

Some key issues employers should know about health care reform (ACA) and the changes which will occur in the next few months. 1. Which employers are affected most? All employers need to review the changes but large employers who qualify under the large employer – 50 FTE formula must be especially aware. For purposes of the penalties under the employer shared responsibility mandate, full-time is defined as an employee that works an average of 30 hours or more a week. Small businesses with less than 50 FTEs will be exempt from the employer coverage “mandate”. A small employer is eligible for the tax credit if it has between 10 and 24 “full-time equivalent employees” with respect to any taxable year. Small businesses are eligible to receive up to 35 percent of their contributions toward their employees’ health insurance premiums if they contribute at least 50 percent of the total premium cost. 2. What is the large employer 50 FTE formula? […]