Now that the Affordable Care Act is in motion, it’s important to understand what that means for businesses in regards to offering healthcare to employees. Regulations differ between small and large businesses, so here’s a brief breakdown. Of course, we welcome you to contact an agent for more in-depth information.
A small business is defined as one with fewer than 50 full-time employees. Small businesses are not required by law to offer group health insurance to employees and are exempt from fines. However, those businesses that choose to offer healthcare may be eligible for tax credits if they meet certain qualifications including:
- 25 or fewer full-time employees
- Pay at least half of employees’ premium costs
- Each employee has an average salary no greater than $50,000
Small businesses (and non-profits) that meet these qualifications can receive two consecutive years of tax credits, which are distributed to help cover the expense of providing healthcare.
A large business is defined as one with 50 or more full-time employees. Large businesses are now required by law to offer group health insurance to employees and pay for at least 50 percent of employees’ minimal essential coverage premium costs. Any large business that doesn’t comply will be subject to costly fines.
However, large business are not required to cover employees’ spouses and families. If dependents are not covered under an employee’s healthcare plan, they will need to purchase individual health insurance policies to meet the national requirements.
Our agents will help you through the changing landscape of healthcare. Call Sound Benefit Solutions at (925) 244-1330 for more information on San Francisco employee benefits.