The end of the year is quickly approaching and bringing with it the end of the Affordable Care Act’s grace period for businesses. The Affordable Care Act or Obamacare will be implemented for businesses in stages over the course of the next two years based on the size of the business.
1) Businesses with 100 or more Employees
After the beginning of 2015, businesses that have 100 or more employees will be required by law to offer health insurance to at least 70% of their employees. In 2016, businesses must cover 95% percent of their workforce.
2) Medium Sized Companies
According to the Affordable Care Act, companies with 50 to 99 full-time employees must offer insurance in 2016 to 95% of their employees.
3) Smaller Businesses
Smaller companies with under 50 employees are exempt from coverage requirements.
4) Penalties for non-compliance
The company will be fined $2,000 dollars for each employee after the first 80 employees for the first year. For the second year in 2016, the company will be fined $2,000 dollars for each employee after the first 30 employees.
Comprehensive Accounting Services has been servicing the Metro Detroit for over 38 years providing tax assistance to businesses.