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Does ACA Apply To You?

The Affordable Care Act (ACA) mandate applies to companies with 50 or more full-time employees or full-time equivalent employees (FTEs). But what does that mean? The number involves an average of the number of full-time employees and part-time employee hours each month. So does it apply to you?

Let's find out.
Determine the number of your full-time and FTE employees
Determine the number of your full-time and FTE employees
Does the ACA apply to my business?
Because you have MORE THAN 50 employees, the ACA DOES apply to your business.

You are required to offer health insurance coverage which:

  • The employer plan design pays 60% of costs (minimum value)
  • AND
  • Employee contribution (for lowest cost plan) does not exceed 9.5% of household income

Do you have a plan to offer coverage that meets these standards by January, 2015?

No Yes
Because you have FEWER THAN 50 employees, ACA DOES NOT apply to your business. Yet.

While your business is not currently required to offer coverage, what will happen when you win your next bid and see an increase in employees?

Now is the time to create a long-term healthcare coverage strategy to protect your employees and your business.

Business considerations
  • If you haven't included the cost of healthcare in your bid that pushes you over the 50 employee average, you could face unexpected costs or steep penalties next year.
  • Even without having 50 full-time employees, paying the fringe as cash wages instead of bona fide benefits is costing you more in payroll taxes and thus, profitability.
  • Offering health insurance makes it easier to recruit and retain top talent.
  • There are tax deductions and credits for employer/fringe contributions.
  • As more government agencies and ordinances are looking to require health insurance, it's only smart to make a strategy now.
Key questions:
  1. 1 If the next contract takes you over 50 employees, will you pay the penalties or seek coverage?
  2. 2 Which employees would require coverage?
  3. 3 If you were to get coverage, how would you get it?

The Contractors Plan is the benefits expert that can help you answer all of these questions.

Contact us now

Am I ACA ready?
Congratulations! Sounds like you're ready for ACA.

It's good news that you've already got your health insurance coverage in place. You can be proud that you're investing fringe dollars in your employees as opposed to spending extra on payroll taxes or penalties.

Businesses that do not offer acceptable coverage by January of 2015 will face non-deductible tax penalties equaling the lesser of:

  • $3,000 annually for each full-time employee receiving a government healthcare subsidy
  • $2,000 annually per full-time employee minus the first 30
Business considerations:
  • Limited medical or "mini-med" coverage is not ACA compliant.
  • Offering coverage reduces your payroll burden, makes bids more competitive and helps you be more profitable.
  • A healthy workforce is more productive.
  • Achieving "credible" risk status enables more options for the future.
  • Grants and tax credits are available for offering wellness programs and for certain small businesses.
Key questions:
  1. 1 Are you covering the right employees?
  2. 2 Are you taking proper credit for the fringes you're required to spend?
  3. 3 Would an hour banking or reserve solution help with your accounting and the challenges of a volatile workforce?

If you'd like someone to review your plan and FTE count to ensure you're covered, The Contractors Plan is here to help.

Contact us now
Don't miss your chance to put an ACA strategy in place.

Time is growing short before ACA is mandatory – and as businesses scramble for compliance, coverage is only becoming more expensive.

If your business doesn't offer acceptable healthcare coverage by 2015, you will face penalties equaling the lesser of:

  • $3,000 annually for each full-time employee receiving a government healthcare subsidy
  • $2,000 annually per full-time employee minus the first 30

These penalties are not tax deductible, and fringe dollars cannot pay for them.

Business considerations:
  • In addition to ACA, more government agencies and ordinances are looking to require coverage.
  • You can point to ACA as a clear reason for taking the fringe out of wages.
  • Offering coverage will reduce your payroll burden, make bids more competitive and help you be more profitable.
  • Limited medical or "mini-med" coverage is not ACA compliant.
  • If you're not offering coverage, you're missing out on tax deductions for employer contributions.
Key questions:
  1. 1 Who exactly do you have to cover?
  2. 2 Are you going to pay the penalties or seek coverage?
  3. 3 If you are going to get coverage, how and from where?

The Contractors Plan is the benefits expert that can help you answer all of these questions.

Contact us now