The Affordable Care Act and Small Businesses
The Affordable Care Act will help small businesses by lowering premium cost growth and increasing access to quality, affordable health insurance. According to the Small Business Administration there are 3 things that small businesses should know:
1. Businesses with Fewer than 25 Employees- Small Business Tax Credit
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.
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.
3. Businesses with 50 or More Employees- Employer Shared Responsibility Provisions
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.
For more details please visit the SBA’s full article at: http://www.sba.gov/community/blogs/community-blogs/health-care/top-three-things-small-businesses-should-know-about-affo
Questions? Feel free to call our office at 802.878.1963 or email [email protected]. Davis & Hodgdon Associates has been assisting clients in the Burlington Vermont Metro are for more than 20 years.