Affordable Care Act 101 Small-Business Tips

by Emma Luevano

 

5. A small-business owner might have two or more businesses in entirely different industries, such as a restaurant and a carwash. Even if each of these businesses has less than 50 employees, the owner might not be safe from paying the Employer Shared Responsibility Payment. In an effort to curb the possibility that companies will artificially keep their workforces below 50 fulltime employees by creating separate companies, the government will likely aggregate the employees of each businesses to determine whether the 50-fulltime-employee threshold is met.

6. Similarly, if a small company has parent, subsidiary, or brother or sister companies, the government will likely aggregate the employees in each of these companies to determine whether the 50-fulltime-employee threshold is met.

7. The ACA is triggered by 50 fulltime employees. However, the government won’t allow companies to avoid the ACA by having 49 fulltime employees and keeping the rest working part time. Instead, if the number of fulltime employees is near 50 and the small business has many part-time employees, the number of part-time employees might be aggregated to determine whether the 50-fulltime-employee threshold is met.

8. Beginning in 2016, employers with 50 or more fulltime employees will be required to file an annual report with the IRS providing healthcare-coverage information for the plan in effect the prior year. The annual report will include, for example, the number of fulltime employees, the amount an employee must pay for the employer’s lowest-cost plan, information about each covered employee and a certification as to whether the employer offered minimum essential coverage.

9. If you think you’ll have more than 50 employees soon, you should plan accordingly in light of the many obligations under the ACA. The federal government has created a website for employers to receive personalized information about changes under the law, important dates to remember, and the formulas for determining requirements and penalties. You can find this information at business.usa.gov/healthcare.

Ultimately, it’s important for all small-business owners to understand what obligations, if any, they may have under the ACA and to seek legal assistance, if necessary, to ensure full compliance with the law.