The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • Affordable Care Act
  • Mid-Size Companies Must Offer Coverage in 2016

Articles

Mid-Size Companies Must Offer Coverage in 2016

November 2, 2015 Robert Sheen Affordable Care Act, Health Care Coverage, Regulations
Mid-Size Companies Must Offer Coverage in 2016

Employers with 50 to 99 full-time workers, or full-time equivalents, will be required to offer Affordable Care Act-compliant health insurance in 2016.

Companies with 100 or more employees (or FTEs), have been subject to the ACA mandate since the beginning of 2015. Employers in the 50-to-100 employees were given an extra year to prepare for the requirement. Those with less than 50 are currently exempt from having to offer insurance.

Starting in 2016, all employers subject to the rule must offer coverage to at least 95% of their employees and to the employees’ dependents, including children up to age 26. They must also provide information to their employees and to the IRS as required by the ACA.

Employees are not obliged to enroll in the plan sponsored by their employer. They are required by the ACA to have health insurance or pay a penalty but are free to obtain their insurance from the provider of their choice.

However, individuals who buy insurance through a federal or state marketplace are not eligible to receive subsidies to offset part of the cost of that coverage if such individuals were offered through their employer’s coverage that meets minimum value and is affordable within the meaning of the ACA. Consumers who don’t have access to employer-sponsored insurance are eligible for the subsidies.

Employers who fail to offer coverage that meets ACA standards for affordability and benefits can face an annual penalty of $2,000 per employee, minus the first 30 employees in 2016.

If the employer fails to offer qualifying coverage and one or more employees receives subsidies for insurance purchased in a marketplace, the employer must pay a penalty of approximately $3,000 for each employee receiving a subsidy.

For purposes of the ACA’s “Employer Shared Responsibility” provisions, a worker is a full-time employee for a calendar month if he or she averages at least 30 hours of service per week or 130 hours of service in a calendar month.

A “full-time equivalent employee” is a combination of employees, each of whom individually is not a full-time employee, but who, in combination, are equivalent to a full-time employee. For example, if two workers each average 15 hours of work per week or 130 hours in a calendar month, they are counted as one full-time equivalent employee.

To learn more about ACA compliance in 2020, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Short URL of this page: https://acatimes.com/cuq
Robert Sheen

Robert Sheen

Esq., is editor-in-chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

HealthcareRegulation
Related Articles DFEH Adds New Guidance for SB 973 Reporting Due on March 31 DFEH Adds New Guidance for SB 973 Reporting Due on March 31
Related Articles Georgia Results May Have Impact on Federal Pay Equity Law Georgia Results May Have Impact on Federal Pay Equity Law
Related Articles Looking Back at Senator Harris’s Equal Pay Plan Looking Back at Senator Harris’s Equal Pay Plan
Related Articles IRS Asks For Comments on New “Cadillac Tax” Rules IRS Asks For Comments on New “Cadillac Tax” Rules by Robert Sheen  •  
Related Articles Uninsured Rate is 9.2%, a Record Low Uninsured Rate is 9.2%, a Record Low by Robert Sheen  •  
Related Articles HHS Awards $685 Million to Improve Patient Care HHS Awards $685 Million to Improve Patient Care by Robert Sheen  •  
Subscribe
Clean data owns future

Achieve Pay Equity

Popular Posts

  • Employers, Mark These Key 2021 Dates for 2020 ACA Reporting
  • New Individual Mandate Regulations: What You Need to Know
  • Minimize Penalties with ACA Best Practices for the Holiday Season
  • The ACA is Central to American Health and Wellbeing
  • Democrats Gain Senate, Paving the Way for Biden’s ACA Agenda
  • PPP Loans Are Now Available, Both First Draw and Second Draw PPP Loans

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!