English: U.S. Health Insurance Status (Under 65) (Photo credit: Wikipedia)
Many small businesses have options under the Affordable Care Act (aka “Obamacare”) available to them that they may not otherwise know about.
The media has widely reported that, beginning in 2014, businesses with more than 50 full time employees are affected by the Employer Shared Responsibility Provisions that require that businesses either provide medical coverage or pay penalties for failing to do so. What is frequently unreported are two options for employers with less than 50 employees.
The first option allows any business with fewer than 50 employees to purchase coverage through a small business Options Program, which may offer savings as compared to a traditional insurance plan. The second option applies only to businesses with fewer than 25 employees. If the average annual wage of the employees is below $50,000, and the employer contributes 50% or more toward the cost of employee health insurance premiums, the employer is eligible for a tax credit of up to 35% of the employer’s contribution.
The Small Business Administration’s notice provide more information here.
