Oct 29, 2014
The Affordable Care Act has led to many changes with small business owners and the employee benefits they need to provide. Many of the mandates were postponed last year, so there is a lot of confusion. We are here to help!
Starting January 2015 the Affordable Care Act will require that employers with 50 or more full-time and/or full-time equivalent employees must offer health plan coverage for their employees and the employee's dependents.
The Employer Mandate Final Rule delays and adjusts this mandate as follows:
The Final Rule granted additional transitional relief to employers with 50-99 full-time employees until 2016. These employers will have to certify that they are not reducing the size of their workforce to fall under the 99-employee threshold and are subject to certain maintenance of coverage requirements.
Employers with 100 or more employees subject to the mandate in 2015 will satisfy the requirement to offer minimum essential coverage if at least 70% of their eligible employees are offered coverage (rather than 95% as in the original rule). Employers must offer coverage to 95% of eligible employees beginning in 2016.
This rule change does not affect businesses with fewer than 50 employees because the Affordable Care Act does not require these employers to provide coverage to employees.
Beginning in 2016, applicable employers that employed an average of 50 or more full-time and/or full-time equivalent employees during the preceding calendar year, must file a return with the IRS that reports the terms and conditions of the health care coverage provided to the employer’s full-time employees for the calendar year.
There are no comments yet.