Affordable Care Act Information for Employers with 50 or More Employees
The 2014 tax season is upon us and, with the ACA now in full implementation, it is necessary to stay updated on the provisions and modifications impacting your business as well as benefits to your employees. In part 1 of this series, we provided information for businesses with less than 25 employees and up to 50. Here, we wanted to provide some helpful information for businesses with 50 or more full-time employees. We also provide a quick reference chart below showing overall provision comparisons, according employee size:
Affordable Care Act Provisions Matrix
| Provisions | Less than 25 Employees | Less than 50 Employees | 50 or more employees |
| Small Business Health Options Program or SHOP | X | X | NA |
| Notice to employees | X | X | X |
| Summary of benefits and coverage | X | X | X |
| Medical loss ratio rebates | X | X | X |
| Limits on Flexible Spending Accounts or FSA | X | X | X |
| Addt’l Medicare withholdings on wages | X | X | X |
| New Medicare assessment on net Inv. income | X | X | X |
| 90-Day max waiting period | X | X | X |
| Workplace wellness programs | X | X | X |
| Eligible for tax credit | X | X | NA |
Reporting Provisions of the Affordable Care Act
- Information Reporting on Health Coverage by Employers – From 2015, employers are required to report information regarding the health coverage they offer by filing Form 1094 with the IRS. The first report will not need to be filed until 2016.
- W-2 Reporting of Aggregate Health Care Costs – From 2013, employer provided coverage cost must be reported on their employees’ W-2.
Other Affordable Care Act Provisions for Companies with more than 50 employees
- Employer Shared Responsibility Provisions – From 2015, employers with 100 or more full-time employees or FTEs (those working at least 30 hours per week) need to provide affordable coverage and the “minimum value.” If the employer chooses not to provide coverage, they will “share responsibility” if an employee gets coverage in an exchange and receives a subsidy or tax credit. After 2016, this applies to employers with 50-99 employees as well.
CJA is here to help you navigate through the Affordable Care Act provisions, as well as keep you up to date with related changes having an impact on your business. If you have any additional questions, or would like us to help provide an optimal, cost-effective solution to your tax challenges this year, please contact us today at 410.772.0065 or here to speak with a member of our team.
Visit the following links to learn more about the ACA: