Affordable Care Act Requirements for Small Business Owners

Small business owners with fewer than 50 full-time employees are exempt from the requirements of the ACA for 2015 only; however, Congress is considering extending that time period. In addition, small business owners are not required to report with the IRS of whether or not they are offering health insurance to their employees. Although small businesses are exempt from the ACA requirements, there is a tax credit that is available to offset the costs of providing health insurance to their workers. To qualify for the tax credit, the business must have fewer than 25 employees for the year, the annual average wage of those particular employees is $50,000 per each full-time employee, and the premiums must be paid under a qualified arrangement. The maximum credit amount is 35%. A qualified arrangement is one that the employer pays premiums for each full-time employee in an amount not less than 50% of the premium cost of coverage. For years beginning in 2014, the average premium figures will be found on the HHS website (IRS.gov/2014). For further information regarding the AFA for small business owners, please go to: http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-Questions-and-Answers:-Calculating-the-Credit AllRight Consulting & Tax, LLC