Will Your Biz Face Penalties in 2016’s Obamacare?

Infographic from: http://kff.org/infographic/employer-responsibility-under-the-affordable-care-act 

Let’s break that down and take a look at it all:

If you have less than 50 FTE employees

• No Penalties
  With less than 50 full-time-equivalent employees, you won’t have any penalties for not providing insurance.  Here’s a handy reference for calculating FTE: http://www.healthlawguideforbusiness.org/fte-calculator 
• Potential Tax Credit if You Offer Insurance Anyway
  If you have less than 25 fte’s with an average annual wage less than $50k, and you opt to pay at least 50% of their insurance premium, then you might be eligible for a health insurance tax credit to buy coverage through Obama-care’s SHOP marketplace.  To find out more about that, just drop me a line and I’d be happy to help you figure it out: http://ebs-consulting.com/staff_list/ed-adams/  

More than 50 FTE Employees

• Must offer coverage to at least 95% of our FTE’s and their dependant children
  If you didn’t meet this criteria, and at least one of your FTE’s received a tax credit or cost-sharing subsidy from the federal or state marketplace, then you will pay a penalty for not providing coverage.  The penalthy for each month you failed to offer coverage is $180 multiplied by the number of full-time employees (minus up to 30).
• The insurance must have paid for at least 60% of the health care expenses for a standard population (the minimum value)
  If you didn’t meet this criteria, and at least one of your FTE’s received a tax credit to help pay for coverage, then you will pay a penalty for not providing coverage.  The penalthy for each month is $270, for each FTE receiving a premium tax credit that month (up to a max of $180 multiplied by the number of FTE (minus up to 30))
• Did any of your employees have to pay more than 9.66% of their household income for the employer coverage (called affordable coverage)?If not, then you don’t owe a penalty,  If they did, and at least one employee received a premium tax credit to help pay for coverage, then you owe a penalty.  The penalthy for each month is $270, for each FTE receiving a premium tax credit that month (up to a max of $180 multiplied by the number of FTE (minus up to 30))

If you’re still confused, then just drop me a line and I’d be happy to help you figure it out:
http://ebs-consulting.com/staff_list/ed-adams