3 ACA Facts for Small Employers
‘Pay or Play,’ Information Reporting, and More
The Internal Revenue Service is reminding small employers about three key provisions of the Affordable Care Act (ACA) that may or may not affect them:
- Pay or Play: Employers with fewer than 50 full-time equivalent employees are not subject to the employer shared responsibility (“pay or play”) provisions.
- Information Reporting: All employers—regardless of size—that provide self-insured health coverage must file information returns with the IRS and furnish statements to responsible individuals about each person enrolled in coverage. The deadline for filing with the IRS is February 28, 2017 (or March 31, 2017, if filing electronically). The deadline for furnishing to the responsible individual is March 2, 2017, which is a 30-day extension from the original due date of January 31.
- Small Business Health Care Tax Credit: Employers with fewer than 25 full-time equivalent employees may be eligible for the Small Business Health Care Tax Credit. Among other requirements, these employers are generally eligible for the credit if they cover at least 50% of their full-time employees’ premium costs, and the coverage is purchased through a Small Business Health Options Program (SHOP) Marketplace.
For more information, please visit the IRS’ Affordable Care Act Tax Provisions for Small Employers webpage.
