Top 5 Things Small Business Owners Need to Know about the Affordable Care Act
Taken from HealthCare.gov FactSheet
- If you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. This will bring down the cost of providing insurance.
- Under the health care law, employer-based plans that provide health insurance to retirees ages 55-64 can now get financial help through the Early Retiree Reinsurance Program. This program is designed to lower the cost of premiums for all employees and reduce employer health costs.
- Starting in 2014, the small business tax credit goes up to 50% (up to 35% for non-profits) for qualifying businesses. This will make the cost of providing insurance even lower.
- In 2014, small businesses with generally fewer than 100 employees can shop in an Affordable Insurance Exchange, which gives you power similar to what large businesses have to get better choices and lower prices. An Exchange is a new marketplace where individuals and small businesses can buy affordable health benefit plans.
- Exchanges will offer a choice of plans that meet certain benefits and cost standards. Starting in 2014, members of Congress will be getting their health care insurance through Exchanges, and you will be able to buy your insurance through Exchanges, too.
- Employers with fewer than 50 employees are exempt from new employer responsibility policies. They don’t have to pay an assessment if their employees get tax credits through an Exchange.
Resources for Small Businesses
Use these resources to learn more about important features of the health care law:
- Learn more about the Early Retiree Reinsurance Program at www.errp.gov.
- See if you qualify for the small business tax credit at www.irs.gov.
- Employer Bulletin: FAQs on Automatic Enrollment, Employer Responsibility, and Waiting Periods.
Use these resources to get the most out of your insurance:
- Find and compare health plans for your employees.
- Video Gallery: Small Business Health Plan Finder.
- Find answers to frequently asked questions for small business, large business, and the self-employed.
Visit http://www.healthcare.gov/small-business for more information.