Health Care Reform Support for Businesses
The federal Patient Protection and Affordable Care Act (PPACA), also commonly known as Health Care Reform, involves many changes that will affect your employer-sponsered plan whether you are a large group or a small group.
Your Wisconsin Benefit Planning, Inc. team can help you through this complicated maze and can help you understand:
- Pay or Play rules and guidelines
- PCORI (Patient Centered Outcomes Research Institute Fees) for self-insured plans
- Required notices
- Grandfathered plans
- Changes to dependent coverage
- IRS reporting requirements
- Applying in the SHOP (Small Business Health Options Program)
- Ever-changing rules and guidance
and much more. With so many changes in place we are here to make sure that you stay compliant and help you with strategies to make well-informed decisions that will include the best options for you and your employees.
The SHOP (Small Business Health Options Program)
This federal program helps small business owners provide insurance to their employees. To be eligible to participate you must have 50 or fewer full-time equivalent employees (FTEs). The chart below defines how the program counts employees.
|Full-Time Employees||Employees who work an average of 30 hours or more per week for more than 120 days in a year.|
|Part-Time Employees||Employees who worked an average of less than 30 hours per week but more than 120 days per year.|
|FTE||Two half-time employees count as one FTE. That means 20 half-time employees equal 10 FTEs.|
To see if you qualify for SHOP you can use this tool from healthcare.gov: www.healthcare.gov/shop-calculators-fte.
Small Business Tax Credit
To be eligible for the Small Business Tax Credit you must have fewer than 25 employees. The program works on a sliding scale so the smaller the business or charity, the bigger the credit. On top of the credit, eligible businesses can claim a business expense deduction for the premium payments in excess of the credit meaning you get both a credit and deduction for employee premim payments.
|Tax Year Beginning in 2014 or later|
|Eligibility||Employers must have fewer than 25 employees and pay at least 50% of your full-time employees premium costs. Average employee salaries must not exceed $50,800 for the 2014 calendar year and you must enroll in a SHOP Marketplace in your State|
|Availability||Will be available to employers for two consecutive taxable years.|
Up to 50% of premiums paid for small business employers
Up to 35% of premiums paid for small tax-exempt employers
Tax Credit Estimator
Source: www.healthcare.gov and www.irs.gov.