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Before the Affordable Care Act (ACA), small businesses paid on average 18% more in premiums than their larger competitors for the same benefits. The ACA helps small employers by lowering premium cost growth and increasing access to quality, affordable health insurance.
The Affordable Care Act provides better health security by putting in place comprehensive health insurance reforms that help to:
Below are few videos that would help you understand Affordable Care Act (ACA) and your responsibility as an employer.
As a business owner, it’s important to understand what the new health care law means for you and how you can benefit. However, there are a lot of misconceptions out there, and you need to know all the facts.
The Small Business Tax Credit helps small employers offset the cost of providing health care coverage and is specifically targeted for those businesses with low- and moderate-income workers. Businesses that have fewer than 25 full-time equivalent employees, pay average annual wages below $50,000 (indexed annually for inflation), and contribute a uniform 50% or more toward employees’ self-only health insurance premiums may qualify. As of 2014, this credit is available to those qualified small businesses that participate in the Small Business Health Options Program (SHOP) Marketplace and may be worth up to 50% of the employer’s premium costs (35% for tax-exempt employers). Use this Tax Estimator Tool to help see if you qualify.
Starting on January 1, 2015, employers with 100 or more full-time employees (including full-time equivalent employees) that do not offer health insurance to their full-time employees (and dependents), or that offer coverage that is not affordable or that does not provide minimum value, may be required to pay an assessment if at least one of their full-time employees receives a premium tax credit to purchase coverage in the new Marketplace. Employers with at least 50 but fewer than 100 full-time employees (including full-time equivalents) will generally have an additional year, until January 1, 2016, before these rules apply.
Businesses with fewer than 50 employees are generally not subject to the Employer Shared Responsibility provisions – that is nearly 96 percent of all firms in the United States.