Thinking the provisions outlined in the Affordable Care Act doesn’t apply to your business because you are “under the threshold of 50 employees” is a very dangerous assumption to make.
It’s likely that you’ve heard much ado about the significant changes (and the penalties associated with these changes) large employers – those with more than 50 full-time-employees – are expected to make, but small employers are not immune to the ACA. In fact, the legislation also outlines changes that are mandatory of “any” employer.
The “any” employer changes I have found typically aren’t considered a problem for larger employers because they aren’t likely to have the conditions that result in issues with these specific changes. Companies with fewer than 50 full-time employees, on the other hand, are at great risk.
Why small business owners should be aware of “any” employer changes
It’s typical for small business owners to think they don’t have to worry about the changes that resulted from the ACA. Oftentimes, they will point to their smaller size as justification. The only thing that does is leave them vulnerable to the penalties associated with noncompliance.
Listen to episode 5 of unsuitable on Rea Radio to learn more
about ACA changes small business owners should be aware of.
The “any’ employer changes impacting small businesses are potentially even more costly than the penalties faced by the “larger” employers. In fact, you could be looking at a max penalty of $36,500 per employee, per year. In contrast, the max penalty on the “large” employer is only $2,000 per full-time employee, per year.
If you own a business with around 30-50 staff members and you are thinking about dealing with the new health insurance mandates on your own, take a minute to consider whether it’s really worth the risk. I recommend seeking another opinion. So many people, including you and your family, depend on the general well-being of your business. You can protect this valuable asset by being sure about whether or not you comply with these costly ACA provisions.
Email Rea & Associates to connect with an ACA expert today.
By Joe Popp, JD, LLM (Dublin office)