In 2013 (in preparation for 2014) all small businesses of USA need to decide if they are participating in the Affordable Care Act (ACA) which requires large employers (50 employees and up) to either provide health care insurance or pay a shared responsibility fee if they don’t provide affordable coverage (the fee/tax will be $2000-3000/yr per employee).
The law specifically exempts all firms that have fewer than 50 employees from any employer responsibility requirements.
To small businesses who choose to offer health care insurance (looking at both the numerous variables involved and the tax credits available) some small employers are choosing to offer either health care insurance, or offer monies to help with the insurance their employee’s found in the Exchange.
But some employers who are hovering around 50 employees are choosing not to be involved in the politics of being in the large employer category and are choosing to keep their employee numbers at 49 or below.
Businesses can choose an Employer of Record service and provide their valuable workers healthcare insurance and benefits the same as a large employer can.
Some businesses may choose to keep their employee number below 50 and they will not have to worry about all of the complicated details.
Click here for 13-page summary of the Healthcare Reform Law.
Click here for the USA map showing the states and their exchange decision.