Affordable Care Act’s Impact on Small Businesses
Many readers may have heard of the "pay-or-play" penalty, also known as the Employer Shared Responsibility Payment, under the Patient Protection and Affordable Care Act ("Affordable Care Act"). However, according to the U.S. Small Business Administration, only 4% of U.S. firms qualify as a large employer subject to the penalty. For those readers who may not be familiar, the "pay-or-play" provision, which has been delayed until 2015, requires employers with 50 or more Full-Time Equivalent employees to provide health coverage that meets minimum essential coverage and affordability standards to at least 95% of their full-time employees (and their dependents) or face a penalty if their employee obtains a federal tax credit for health care purchased through the federal or state Health Insurance Marketplace.