What is the Affordable Care Act (ACA)?
The Affordable Care Act (ACA) was issued by Obama in March, 2010 and requires all employers with 50 or more full-time, or full-time equivalent (FTE), employees to provide health care plans/coverage for their employees. If your company does not comply with Affordable Care Act regulations, you will be required to pay an “Employer Shared Responsibility Assessment”, or more commonly referred to as a pay-or-play penalty. Fines for this pay-or-play penalty can range anywhere from $2000-$3000 per full time employee and occurs usually when an employee receives a premium tax credit or cost-sharing reductions. This can be a result of your company not providing health care in general, or not providing health care that your employees feel they can afford. Below is an infographic to help your company see whether or not you are liable for employee health care and whether or not pay-or-play penalties apply to you.