Are you concerned about employer health insurance penalties in 2015? As you know, the penalties for not offering insurance to employees were suspended for 2014 and information reporting was voluntary. That delay was temporary. The rules that apply to your business in 2015 depend on how many full- and part-time workers you employ.
For example, when the number of your employees is fewer than 50, you’re not required to provide health insurance and the “employer shared responsibility” penalties do not apply. If your workforce consists of 50-99 full-time employees, the penalties start in 2016. When you employ 100 or more workers, the penalties begin this year.
The cutoffs may be less clear than they seem. For example, when counting employees, you generally must include the hours of those who work less than full-time (currently defined as 30 hours per week). That’s because the total number of employees includes “full-time equivalents.” These are employees whose actual working hours are less than 30 per week, but whose total combined hours meet the equivalent of full-time.
One more caution when figuring how many workers you employ: For purposes of the penalties, common ownership and control of multiple businesses is considered. That means you add together the employees in all the businesses you own or control.
Be aware that the law includes other penalties that can affect your business regardless of the number of workers you employ.
Give Carl Heinemann, your Chattanooga CPA, a call if you have questions. We’ll work with your insurance specialist to make sure you’re in compliance.