How are health employment benefits treated by the ACA?
The Affordable Care Act (ACA) has altered the landscape of the healthcare system in the United States. Under the ACA, substantial changes on health coverage were made, affecting the way employers provide employment benefits to their employees with the fringe benefits portion of the prevailing wage. As employers, it is of utmost importance that you understand how the ACA affects your business, and on how you can utilize the ACA to benefit your company.
Effect of the ACA on Health Employment Benefits
Depending on the number of your full-time employees, employers will now be required to provide health coverage to their employees as part of the employment benefits under the fringe benefits portion of the prevailing wage. Businesses can opt to not provide health coverage to their employees, but doing so will result to penalties that could amount to hundreds of thousands of dollars cumulatively.
If your business has over 50 full-time employees, you are advised to provide health coverage to your employees under the Affordable Care Act. For businesses with 25 employees or less, including health coverage in the employment benefits of your employees are also encouraged.
As an incentive, small businesses who are not subject to mandatory healthcare coverage requirements can be eligible for a tax credit. Such businesses can claim their tax credit if (1) They have 25 employees or less, (2) They pay at least 50% of the premium cost of the health coverage of their employees and, (3) If their employees have less than $50000 average annual wage.
Penalty for Non-Complying Employers under the ACA
For employers with more than 50 full-time employees, health coverage must be included in the employment benefits package with the use of the fringe benefits portion of the prevailing wage. Failure to do will result to fines and penalties under the terms provided by the Affordable Care Act. If you choose not to provide health coverage to your employees, you can face a penalty ranging from $2000-$3000 for every employee, minus your first 30 employees.
Consult with ARCHER JORDAN to Know More About Providing Health Coverage to Your Employees!
Employers need to be smart about their strategy when dealing with the provision of health employment benefits under the ACA. There are a lot of things to consider, and weighing the pros and cons of providing health coverage to your employees needs to be done with people who have years of experience in the field. Contact ARCHER JORDAN now at +1 888-745-0754 for more questions!