Come January 1 all businesses will now be required to provide health insurance to all of their employees. Additionally, businesses are going to have to track its affordability, or whether it costs 9.5% or less of an employee’s gross income. If it’s more, business owners will have to inform employees they can receive a subsidy through a plan on the Exchange.
If your business has 5o to 99 employees, you’ll be asked to fill out two forms. One for employees recording their full time status, insurance status, and cost. The other form is for the IRS and compiles that same information for all of a company’s employees.
Businesses with over 100 employees could face one of two new penalties on January 1, too. If a company chooses not to offer health insurance, they will be subjected to a fine of $2,000 annually per employee. If the business does offer insurance, but it’s not deemed affordable, a fine of $3,000 annually per employee who can’t afford the insurance can be imposed.
Come 2016, both penalties will apply to businesses with 50 or more employees.