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→Between 50 and 99 Employees
===Between 50 and 99 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, thus dis-incentivizing small businesses from expanding their labor force. Firms that employ 50 or more workers and don't provide health insurance must pay a tax penalty of $2,000 for each uninsured employee beyond the first 30. Furthermore, firms with 50+ workers are required to contribute at least 60 percent of the cost for individual minimum essential coverage. ([http://www.ncpa.org/pub/st356)]. This 50th employee marker serves as the reason why many critics of the ACA believe that Obamacare is killing jobs, as well as the reason why many small business owners have concerns about expanding their businesses.
“A survey of more than 600 small business owners by the Society for Human Resource Management found that more than four-in-10 small business owners have delayed hiring due to uncertainty about the effects of the Affordable Care Act. One in five reported they have cut the number of workers they employ. The Society for Human Resource Management also found 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.41 Those employees will be eligible for subsidized coverage in a new health insurance exchange” [http://www.ncpa.org/pub/st356].
Companies with between 50 to 99 employees are required to provide insurance, but the penalties imposed for not complying with the ACA requirements were delayed until 2016, while the penalty for companies with > 99 employees was delayed until 2015. Because 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.
