Some of the provisions of the Affordable Care Act, or health care law, apply only to small employers, generally those with fewer than 50 full-time employees, including full-time equivalent employees.
If you have fewer than 50 employees, but are a member of a group with a certain level of common or related ownership with 50 or more full-time employees, including full-time equivalent employees, you are subject to the rules for large employers.
Here are the responsibilities and benefits for small employers under the health care law:
Coverage
You can purchase insurance through the Small Business Health Options Program (SHOP). Learn more at HealthCare.gov.
Reporting
- You must withhold and report an additional 0.9 percent on employee wages or compensation that exceeds $200,000.
- You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.
- If you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover.
Payments and credits
- You may be eligible for the Small Business Health Care Tax Credit if you cover at least 50 percent of your full-time employee's premium costs and you have fewer than 25 full-time equivalent employees. See the Small Business Health Care Tax Credit Estimator.
- If you self-insure, you may be required to pay a fee to help fund the Patient-centered Outcomes Research Trust Fund.
