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→Small Businesses with More than Fifty Employees
Small businesses with fewer than 50 FTE are exempt from the penalties of ACA; however, as soon as a company reaches the 50th employee mark, the hire becomes much more expensive, possibly dis-incentivizing small businesses from expanding their labor force. Firms that employ 50 or more workers and choose not to provide health insurance coverage must pay a tax penalty of $2,000 for each uninsured employee beyond the first 30. Furthermore, firms with more than 50 workers must contribute, at a minimum, 60 percent of the cost for individual minimum essential coverage. [http://www.ncpa.org/pub/st356]. This increased marginal cost we see for the 50th employee serves as the reason why many critics of the ACA believe that the ACA is killing jobs, and also why many small business owners may have concerns about expanding their businesses.
According to a survey conducted by the Society for Human Resource Management of more than 600 small business owners, more :*More than four out of ten small business owners "have delayed hiring due to uncertainty about the effects of the Affordable Care Act." *One in five small business owners reported that they have cut their number of employees. The Society for Human Resource Management also found that about one in five small businesses are reducing workers' hours to part time because they are not required to offer coverage for employees who work less than 30 hours per week. These part-time employees are eligible for subsidized coverage in the new health insurance exchanges offered through the ACA [http://www.ncpa.org/pub/st356]. Companies with between 50 to 99 employees are required to provide health insurancecoverage to their employees, but the penalties imposed for not complying with the ACA requirements were delayed until 2016, while the . The penalty for companies with more than 99 employees was delayed until 2015. As a result of these delays, it is not entirely possible to fully understand and analyze the exact effects of the ACA on small businesses that are required to provide health insurance to its employees.
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