for Small Businesses In 2016
The Affordable Care Act (ACA) which was passed in 2010 has
requirements that will go into effect starting in 2016.
These requirements will have consequences for small
Businesses will have to start providing health insurance to
their employees if
they have 50-59 full-time equivalent employees.
Businesses will have to provide insurance to those
employees and their dependents up to age 26 or pay a fine.
100 or More
Businesses with 100 or more full-time equivalent
employees have to start providing health insurance to at
least 95 percent of their full-time employees and their
dependents up to age 26.
Responsibility (Employer Mandate):
Businesses with 50 or more full-time equivalent employees
will be required to pay a monthly penalty per employee if
they don’t offer health insurance.
This penalty can also be levied if the insurance
coverage does not meet “minimum value” or is deemed not
Businesses are now required to provide their employees with
Businesses are also required to send a copy to the
IRS by 29 February 2016, or 31 March 2016 if not filed
Small businesses with less
than 25 full-time employees that provide health insurance to
their employees can earn a tax credit if those employees
earn less than $50,000 per year.
To get the credit small businesses insurance coverage
must be made on the
Small Business Health
Option Program (SHOP).
Employers are required to provide workers with a standard
Summary of Benefits and Coverage (SBC) form
that explains what their plan covers and what it costs.
The penalty for not complying with this requirement
is $1,000.00 per enrollee for each failure to comply.
The Small Business Zone