Question

a) Suppose a business has 18 employees. Does the ACA give any financial help for them to offer their employees’ health insurance? Can this benefit make the employer’s contribution to health insurance costless?

b)  Answer the questions above for a business that has 85 employees.

Answer 1

ACA health insurance

General Requirement: As per the affordable care act (ACA), if a company is having 50 or more than 50 employees as full-time workers, then company is required to pay health insurance to their employees, or have to pay penalty for not giving coverage for that.

For the full - time employees:

• The worker should work for 30 or more per week or
• 130 hours for month

1. Business has 18 employees

The business had 18 employees; it means it is not governed by the above stated act. If the business owner wishes to give benefits to the employees, then the benefits which can be availed by the owner are:

If the company is paying at least 50% of the premium to the employees, then the credit can be give to the company. This credit can be carried forward for 20 years and carried back to the 1 year.

Other than the credit company can take tax benefit for the benefits give to the employees, the tax rate will be 35% or 50% depend upon the incorporation of company.

2. Business has 85 employees

It means busies is governed by the ACA. The business has to comply all the regulations mentioned under the act. Or if fails then the business have to pay penalties.