Your Workforce and the IRS Health Care Tax – Affordable Care Act Tax Provisions for Employers
Why the Number of Your Employees Matters
Employer benefits, opportunities and requirements under the health care law are dependent upon the employer's workforce size.
The vast majority of employers fall below the workforce size threshold for applicable large employers. Generally, an employer with 50 or more full-time employees or equivalents will be considered an applicable large employer. Applicable large employers can find a complete list of resources and the latest news at the Applicable Large Employer Information Center on IRS.gov/aca.
If you have:
- Fifty or more full-time equivalent employees, you will need to file annual information return reporting whether and what health insurance you offered your full-time employees. In addition, you are subject to the Employer Shared Responsibility provisions.
- Fifty or fewer employees, you are generally eligible to buy coverage through the Small Business Health Options Program. Learn more at HealthCare.gov.
- Fewer than 25 full-time equivalent employees, you may be eligible for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.
Regardless of size, all employers that provide self-insured health coverage to their employees must file an annual return reporting certain information for each employee they cover.
Barracuda Staffing can help you navigate the difficulties introduced into the workforce by the new health care tax. We have answers regarding the Affordable Care Act Tax Provisions and how they impact Employers.