Affordable Care Act and How it Affects Employers

Friday, July 3, 2015
If you are an employer with over 50 employees, then you should listen up. There are requirements of the Affordable Care Act (ACA) that will affect how larger employers, with 50 or more full-time employees, will need to report about the type of health insurance they offered in 2015 to their full-time employees.  The ACA is meant to provide access to individuals who lack health insurance coverage by providing insurance that is affordable and adequate.

We are the Strategic Tax Lawyers, professional business tax lawyers who want to inform employers about these ACA provisions.   By law, all employers that provide their employees with health insurance coverage need to file an annual tax return that includes information about the employees they cover. These returns will be due in 2016 for tax year 2015.  For employers with over 100 full-time equivalent employees will have what’s called an employer shared responsibility condition in which they may need to make a shared responsibility payment.  However, this will only apply to those employers that offer inadequate or unaffordable health coverage.

We suggest calculating how many employees you employee throughout the year, as the number may fluctuate.  The best way to determine the number of employees is to take an average of the total number of full-time employees for each month and divide that total number by 12.  This will give a clearer picture of how many employees this provision will affect.

If an employer has over 50 employees, they will not be able to purchase health insurance through the Marketplace for Small Business Health Options Program (SHOP).  Good news for employers with 50 employees or less.  They are able to purchase health insurance coverage using the SHOP Marketplace.
The Strategic Tax Lawyers, LLP are professional business tax lawyers with years of experience in tax-related and IRS issues.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters