If you have employees there is no need for you to put off going over your 2014 company’s health plan. The deadline will approach fast and you have a lot of decisions to make to insure that you are ready for the changes that are going to take place in the health care world.
The first thing that you have to consider is whether or not you are going to be offering health insurance to your employees and their families as an incentive for working for you.
If you have a small business it is not required by law for you to provide health care to your employees. However, this is something that many businesses do to attract potential employees. The Affordable Health Care Act considers small businesses to be businesses that have less than fifty employers who work at least thirty hours a week. If you do choose to offer your employees’ health plans you will be able to purchase coverage through your state exchange beginning October 1st.
Employers with over 50 employees must offer health insurance
Large businesses are required to offer their employees’ health care or they will have to pay a $2,000 penalty for all of their full-time employees excluding the first thirty. This was to take effect in 2014 with the penalty increasing over the years, but the White House announced on July 2, 2014 that they are delaying the requirement that employers with over 50 employees offer health insurance.
The requirement was to take effect on January 1, 2014 and now will be postponed to 2015. This requirement was to have the most effect on restaurants, retail stores, and major hotels that hire low wage earners.
Some businesses have started considering making their full time employees part time employees as a loop hole to these new laws. However, if you are someone who is considering this you may want to think twice because part time workers are not going to be as efficient as a full time worker. Not to mention the fact that when people lose hours they start hunting for jobs that will provide them with more hours and better benefits.
If your business decides to provide health care plans make sure that it is not classified as subpar. For every one of your employees who gets a federally subsidized policy through the state rather than your company you will have to pay a $3,000 fine. So, to avoid having to pay the fine it is best to find a policy for your employees that pay at least 60% of the costs. Furthermore, your employees should not be paying more than 9.5% of their annual income.
By October 1st business owners should have informed their employees about the insurance exchanges regardless of whether or not insurance will be offered through the business.
Businesses also are responsible for informing their employees that they could possibly be eligible for a subsidy if they purchase a plan. Both part time and full time employees must be notified. If you are unsure about what needs to be included in the notice visit the Department of Labor’s website.