sealed employers can enroll in SHOP through private indemnity companies, or with the help of a SHOP-registered agent or broke. SHOP plans are by and large the only way to qualify for the Small Business Health Care Tax Credit to lower premium costs .
But other parts of the health care law may besides affect employers .
Required reporting about the Marketplace to your employees
certain employers are required to provide certain data about the Marketplace to their employees, whether they offer health indemnity or not.
90-day maximum waiting period
If you offer health indemnity to your employees, you must offer it to all eligible employees when they become eligible for health coverage. Learn about the 90-day waiting period from the IRS ( PDF ) .
Summary of Benefits and Coverage (SBC) disclosure rules
Employers must provide employees with a standard “ Summary of Benefits and Coverage ” ( SBC ) form explaining what their health design covers and what it costs. The purpose of the SBC is to help employees understand their health insurance options. You could face a penalty for non-compliance. Learn more about SBCs and see a sample completed form .
Flexible Spending Accounts (FSAs)
Employees ca n’t contribute more than the annual dollar limit set by the IRS to their elastic outgo Accounts. That limit does n’t apply to employer contributions to the employees ‘ FSAs. Employers have two options to let employees carry over unspent FSA funds into the follow plan year. Learn more about these options ( PDF ) .
Workplace wellness programs
The Affordable Care Act creates incentives to promote employer health programs and other activities that support healthier workplaces. The maximum reward to employers using a health platform that ‘s contingent on employee health has increased from 20 % to 30 % of the price of health coverage. The maximum reward for programs designed to prevent or reduce tobacco use is 50 %. Learn more about health incentives .
Employer Shared Responsibility Payment
certain businesses with 50 or more full-time and full-time equivalent employees that do n’t offer insurance that meets certain minimal standards may be subject to the requital. Learn more about the Employer Shared Responsibility Payment from the IRS.
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IMPORTANT: No small employer, broadly those with fewer than 50 full-time and full-time equivalent employees, is subjugate to the Employer Shared Responsibility Payment, careless of whether they offer health policy to their employees .
Reporting information on health coverage by employers and insurance companies
The health care police requires the following organizations and some other parties to report that they provide health coverage to their employees :
- Certain employers, generally those with 50 or more full-time and full-time equivalent employees
- Health insurance companies
- Self-insuring employers of any size
Learn more about these report requirements from the IRS .
Medical Loss Ratio rebates
insurance companies must broadly spend at least 80 % of premium dollars on medical concern. insurance companies that do n’t meet this requirement must provide rebates to policyholders — normally an employer who provides a group health design. Employers who get these agio rebates must allocate the rebate properly. Learn more about federal tax treatment of Medical Loss Ratio rebates from the IRS.
If you already offer health insurance to your employees
If you offer health indemnity to your employees that is not through SHOP, you can keep the coverage you have. In general, offering a SHOP plan is the merely way to qualify for the Small Business Health Care Tax Credit .
IRS resources for small businesses
The IRS offers respective resources to help employers :
Additional resources for small businesses
There are many health insurance products and services that are available for small businesses and their employees. Learn more about other health indemnity products and services that may be available .