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
  • ACA Definition of ‘Small Employer’ is Revised

Articles

ACA Definition of ‘Small Employer’ is Revised

October 6, 2015 Robert Sheen Affordable Care Act, Legislation, Regulations
ACA Definition of ‘Small Employer’ is Revised

A bill aimed at protecting employees from possible increases in healthcare insurance costs under the Affordable Care Act passed both the House of Representatives and Senate, and has been signed into law by President Obama.

The measure is the first major change to the health care law since it was enacted.

HR 1624, the “Protecting Affordable Coverage for Employees Act” ( PACE), amends the definition of small and large employers.

The ACA says employers with up to 50 workers can buy insurance through state-based markets, including Small Business Health Options Program (SHOP) on the Health Insurance Marketplace, to comply with the law and avoid “employer mandate” tax penalties.

That threshold is scheduled to be increased in 2016 to include employers with up to 100 employees. The change would expose many small and mid-sized companies (i.e., 50-99 employees) to different rules than they are now required to follow, and would likely increase their health insurance premiums.

The PACE Act gives states the option to expand the definition of a “small employer” to include those with up to 100 employees.

Without the PACE Act change, the estimated 18% rise in premiums for employers in the 51-to-100 employee category would encourage many of them to self-insure rather than staying in the small-group markets. Their departure could increase premiums even more for those who stay in the markets.

The Act is expected to result in a net reduction in premiums for employers in this category, according to both the Congressional Budget Office (CBO) and the Joint Committee on Taxation. Both committees expect SHOP to add features that will enable employers to more easily shop for lower-cost plans.

The PACE Act could result in higher premiums for companies that are no longer able to purchase insurance through SHOP.

The Act was backed by a number of business groups, including the U.S. Chamber of Commerce, the National Retail Federation, the National Restaurant Association and the National Federation of Independent Business, as well as state regulators.

To learn more about ACA compliance in 2021, 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/aaj
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

Protecting for Employees ActRegulation
Related Articles How to Leverage Your Workforce Data to Meet DEI Goals How to Leverage Your Workforce Data to Meet DEI Goals
Related Articles An Employer’s Guide to Navigating the DEI&A Landscape An Employer’s Guide to Navigating the DEI&A Landscape
Related Articles Governments, Investors, & Litigators Are Focusing More on ESG Governments, Investors, & Litigators Are Focusing More on ESG
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 How Income Affects The Premium Tax Credit How Income Affects The Premium Tax Credit by Robert Sheen  •  
Related Articles Many Companies Not Ready for ACA Reporting Many Companies Not Ready for ACA Reporting by Robert Sheen  •  
Subscribe

Popular Posts

  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Five Resources Essential for ACA Compliance in 2021
  • Most Frequently Asked ACA Questions for Employers and Individuals
  • Taxpayers (Including Employers) Have the Right to the Challenge IRS

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!