Changes

Although small businesses with fewer than 50 employees are not mandated by the ACA for to provide health care insurance to its employees, there are some additional regulations and provisions associated with the ACA that increase the cost of providing and receiving health care insurance for the firms that do choose to do so. The ACA:

*Requires requires employers to provide their employees with a Summary of Benefits and Coverage Disclosure Rules (SBC’s), a standard form that essentially explains to employees what their plan entails (noncompliance may result in a further penalty). *Caps caps the maximum contribution an employee can make toward a flexible spending arrangement at $2500*Increases increases Medicare withholdings on employees with wages over $200,000 and $250,000 for married joint filers*Assesses assesses net investment income for Medicare (taxable capital gains, dividends, rents, royalties, and interests) for single filers with a Modified Adjusted Gross Income of $200,000 for a single filer (and $250,000 for married joint filers)*Institutes institutes a 90-day maximum waiting period for employees to provide health care coverage employees who are eligible, as well as penalties for surpassing exceeding the 90-day period. *Incentivizes incentivizes employers, using inducements, such as as subsidies on health insurance plans, to offer Workplace Wellness Programs that satisfy the federally accepted requirements. * For for employers that sponsor self-insured plans, requires another information reporting that is separate from the information reporting required for employers with more than 50 FTE [https://www.sba.gov/content/employers-with-up-to-50-employees].