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ACA Basics - Affordable Care Act Tax Provisions for Small Employers

IRS Guidance: Coverage, Reporting, and Payments & Credits 

Some of the provisions of the Affordable Care Act, or health care law, apply only to small employers, generally those with fewer than 50 full-time employees or equivalents. If you have fewer than 50 employees, but are a member of an ownership group with 50 or more full-time equivalent employees, you are subject to the rules for large employers.

Coverage

If you have 50 or fewer employees, you can purchase affordable insurance through the Small Business Health Options Program (SHOP).

To learn more about how the Affordable Care Act may affect your business, visit HealthCare.gov.

Reporting

You must withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000. Learn more.

You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.

Effective for calendar year 2015, if you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover. This rule is optional for 2014. Learn more.

Payments & Credits

You may be eligible for the Small Business Health Care Tax Credit if you cover at least 50 percent of your full-time employee's premium costs and you have fewer than 25 full-time equivalent employees with average annual wages of less than $50,000.

If you self-insure, you may be required to pay a fee to help fund the Patient- Centered Outcomes Research Trust Fund.

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Source:  Internal Revenue Service at http://www.irs.gov/Affordable-Care-Act/Employers/Affordable-Care-Act-Tax-Provisions-for-Small-Employers

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