IRS

We have seen countless articles on the subject of what employers will face in the way of penalties if they don’t follow the new federal mandates for health care reform. The following article is a summary of the best articles we have found from industry sources. Health care reform known as the Affordable Care Act (ACA) goes into effect Jan. 1, 2014. If you are an employer with 50 or more employees, the ACA requires “shared responsibility” for affordable health insurance coverage and imposes a tax penalty if the requirement is not met. Small businesses with less than 50 FTEs will be exempt from the employer coverage “mandate”. For employers of less than 50 FTE then the rules are much simpler and they may be eligible for a health insurance tax credit. Any employer with 50+ full-time equivalents (FTE) is considered a large employer. This includes all part time employees and the hours they work each month. A specific formula […]