Regardless of your politics, the Affordable Care Act will change the way we do business in this country. Some of the facts have been obscured and organizations are looking for help navigating the regulations as they apply to their company. What are the facts of the ACA? How will it affect business, employment, and taxes in the years to come? Here is a quick look at four ways the ACA will impact your business.
- Provide a notice of coverage. A business with more than 50 employees is required to provide notification to all employees regarding health insurance coverage. This requirement began in late 2013. The notice must be provided regardless of whether the employer will offer insurance. The notification must be provided in writing and be understandable by all employees. Contact the Department of Labor for more information on this requirement.
- Tax credit for small businesses. Businesses with fewer than 25 employees were eligible for a healthcare tax credit starting in 2010. This credit was intended to offset some of the insurance costs which rose due to the ACA. The credit is based on a sliding scale related to the income of employees. Before 2014 businesses were able to receive up to 35% of their contribution to insurance. This year the maximum credit was raised to 50%.
- Reporting on W2. The ACA has also changed how healthcare costs are reported on employee W2s. Since its inception, employees are required to provide the value of the employer contribution of their healthcare costs. This is intended for informational purposes only so employees can better understand the costs of their insurance coverage. Some companies may be exempt from this. Contact the IRS to learn more.
- Employer mandate delayed. The mandate that requires employers with over 50 employees to provide insurance by January 1st, 2014 or pay a penalty was extended to 2015. The delay means that employers have the remainder of 2014 to learn about the options afforded to them based on the ACA.
Do you want to know more about the Affordable Care Act? ProSource Staffing, near Deer Park, can help you understand it today!