Affordable Care Act Tax Provisions

Small employers with 50 or fewer employees can now purchase “affordable” insurance through the Small Business Health Options Program (SHOP). Small employers may be eligible for the Small Business Health Care Tax Credit if they cover at least 50 percent of their full-time employee’s premium costs and have less than 25 full-time equivalent employees with average annual wages less than $50,000.

Beginning in 2015, large employers will have annual reporting responsibilities and will have penalties assessed if they do not offer “adequate, affordable” coverage to full-time employees. Employers large and small who self-insure may be required to pay a fee to help fund the Patient-Centered Outcomes Research Trust Fund. Contact us for updates and additional information.

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