Changes

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 potentially 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 employees' coverage. [http://www.ncpa.org/pub/st356]. This increased marginal cost we see for the 50th employee serves as the a 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.