NEW MEXICO’S BUSINESS LAWYERS ®

Five Things Employers Might Not Know About the Affordable Care Act

May 13, 2015
  1. Employers with fewer than 25 employees who offer insurance are eligible for federal tax credits under the ACA if the employer pays premiums for employers enrolled in a health plan offered through the Small Business Health Options Program (SHOP). The SHOP program is available online here.
  2. Employers must keep records now. Even though ACA reporting requirements do not take effect until 2016, the reporting period includes the 2015 year. Records must include several pieces of information, including which employees were offered insurance, when insurance was offered, and the amount of the employee’s share of premiums.
  3. Shared responsibility penalties took effect in 2014 – will your company be on the hook?  Penalties are $2,000 per year per full time employee, minus a statutory limit, if coverage is not offered and $3,000 per year per employee who receives a premium subsidy on a health care exchange if the coverage is not affordable.
  4. The affordable coverage baseline is set to change in 2016 and employers must offer affordable coverage to 95 percent of employees starting January 1, 2016.
  5. Employers must give employees a summary of benefits and coverage (SBC). For more information please see ACA: Employer Notices and Other Need-to-Know Information.

Have questions or need more information? Our Affordable Care Act attorneys: Katharine C. DowneyKeith C. Mier. 505-883-2500.

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