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If such a firm fails to provide health insurance to 95 percent of its full-time employees and their dependents, the business must make an employer shared responsibility payment of $2,000 (indexed for future years) for each full-time employee beyond the first 30 employees to the IRS. Furthermore, firms that employ more than 50 workers must contribute, at a minimum, 60 percent of the cost for employees' coverage. [https://www.irs.gov/affordable-care-act/employers/employer-shared-responsibility-provisions]
The Affordable Care Act and Small Business (view source)
Revision as of 17:56, 29 October 2016
, 17:56, 29 October 2016→Which Small Businesses Are Affected by the ACA?
Under the ACA’s employer shared responsibility provisions, Applicably Large Employers (ALE) employing 50 or more full-time equivalent (FTE) employees are required to offer “affordable” minimum essential coverage that provides “minimum value” to their employees and their dependents.
Employer Shared Responsibility provisions apply to employers that employed 50 or more FTE employees during the previous calendar year. [http://www.hhs.gov/healthcare/] FTE employees are those who work on average 30 hours or more a week for more than 120 days in a year. Part-time employees are considered those who work on average less than 30 hours per week, but more than 120 days per year. The number of FTE employees can be found by totaling the aggregated number of hours worked by part-time employees divided by 30 with the aggregated number of hours worked by full-time employees. [https://www.healthcare.gov/shop-calculators-fte/]
Most small businesses are not subject to ACA requirements. Deutsche Bank Global Markets Research Census data from 2010 and 2012 shows that an overwhelming majority of U.S. firms employ fewer than 20 employees, as firm size in the U.S. (number of workers employed by American businesses) follows a skewed distribution. A majority of businesses actually employ fewer employees than the average firm size. Firms with over 500 employees, however, employ the greatest share of the workforce and contribute the most jobs in our economy. [http://www.businessinsider.com/us-employment-by-firm-size-has-a-fat-tailed-distribution-2015-6%5D]
==The Trend of Rising Premiums==
