SBA Launches Affordable Care Act Web Page & Blog
Monday, January 28, 2013
Today, SBA launched www.sba.gov/healthcare, a page that
aggregates all of SBA's information for small business owners on the Affordable
Care Act. SBA is also launching a blog,
Health Care Business Pulse, to cover a series of topics related to the
Affordable Care Act throughout the year.
Additionally, small business owners can sign up for marketplace
enrollment updates at signup.healthcare.gov.
Top Three Things Small Businesses Should
Know About the Affordable Care Act
by Meredith Olafson, Community Moderator
The
Affordable Care
Act will help small businesses by lowering premium cost growth and
increasing access to quality, affordable health insurance. Depending on whether
you're a small employer or a larger employer, different provisions of the
Affordable Care Act may apply to you as described below.
1. Businesses with Fewer than 25 Employees- Small
Business Tax Credits
The Affordable Care Act does not require that businesses
provide health insurance, but it offers
tax credits
for eligible small businesses that choose to provide insurance to their
employees. To qualify for a small business tax credit of up to 35% (up to 25%
for non-profits), you must have:
-
Fewer than 25 full-time equivalent
employees
-
Pay average annual wages below
$50,000
-
Contribute 50% or more toward
employee health insurance premiums
Beginning in 2014, this tax credit goes up to 50% (35%
for non-profits) and is available to qualified small businesses who participate
in the
Small Business
Health Options Program (SHOP) Exchanges.
2. Businesses with 50 or Fewer Employees- Affordable
Insurance Marketplaces
The Affordable Care Act does not require that businesses
provide health insurance, but beginning in 2014, small businesses with
generally 50 or fewer employees will be able to purchase coverage through
SHOP
, competitive marketplaces where small employers can go to find health coverage
from a selection of providers. The SHOP Marketplaces and Individual
Marketplaces for those who are self-employed open on January 1, 2014. Open
enrollment begins on October 1, 2013. SHOP will offer small businesses
increased purchasing power similar to that of large businesses.
3. Businesses with 50 or More Employees- Employer
Shared Responsibility Provisions
Under the Affordable Care Act, the Federal government,
State governments, insurers, employers, and individuals share the
responsibility to reform and improve the availability, quality, and
affordability of health insurance coverage in the United States. Employers are
not required to provide coverage to their employees under the Affordable Care
Act. However, beginning in 2014, businesses with 50 or more full-time employees
(or full-time equivalents) that do not offer affordable health insurance that
provides a minimum level of coverage to substantially all of their full-time
employees (and their dependents) may be subject to an employer shared
responsibility payment if at least one of their full-time employees receives a
premium tax credit to purchase coverage in an insurance Marketplace. A
full-time employee is generally one who is employed an average of 30 or more
hours per week.
If you meet or are close to this threshold level of
full-time employees, it's important to understand how these rules may apply to
you and how the employer shared responsibility payments could be triggered. For
more guidance on the employer shared responsibility payments, refer to this
FAQ
from the IRS.
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