Quick Tips: Affordable Care Act

1. As of January 1, 2015, businesses with 100 or more employees must provide health insurance to 70 percent or more of their full-time equivalent employees, or they could face a tax penalty of up to $2,000 per employee, per year.
2. Starting in 2016, businesses with 100 or more employees must provide health insurance to 95 percent or more of their full-time equivalent employees.
3. Large employers are required to report the cost of the health coverage provided on each employee’s W-2 in Box 12. Failure to report this information could lead to fines of $200 per employee.
4. Businesses that have 25 or fewer full-time employees, pay average annual wages below $50,000 and cover at least half of the premium cost for their employee’s health insurance can qualify for a tax credit of up to 50 percent of employer-paid premiums if purchased through a state or federal Marketplace.
5. All employers must withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000.