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What Companies Need to Provide Coverage for Their Employees? – If your company has more than 50 full-time equivalent employees, then you will need to provide health insurance coverage options to them. However, those companies that have fewer than 50 full-time-equivalent employees will not be required to pay for coverage. Keep in mind that a “full-time equivalent” is someone who works 30 hours per week on average or 130 hours total a month. However, two part-time workers could add up to one full time equivalent. For example, if you have two part-time workers who each work an average of 15 hours a week, they would count as one full-time equivalent employee.
Those companies who do not have more than 50 employees are under no obligation to provide coverage to their employees. However, whenever they bring aboard a new employee, they are required to let them know about Obamacare and how it works, so they can get coverage on their own. You can find the information you need to pass on to your employees through the US Department of Labor.
Consider Enrolling in Obamacare – Even though your business might not be required to provide Obamacare coverage to your employees, that doesn’t mean it is a bad idea to consider. You can find some great benefits when you provide coverage to your staff. They will be more likely to want to stay with your company since they have coverage. In addition, it helps to keep them healthy and happy, which can make them more productive while cutting down on absences.
For small businesses to be able to go through SHOP, the Small Business Health Options Program, they will need to have fewer than 25 full-time equivalent employees, pay at least half of their premiums (35% for nonprofits), and they need to have an average annual wage of less than $50,000. You will find out if you qualify when you apply. If you do, then you will be able to look at the various plans and prices for the coverage. Try to find a plan that will meet most of the needs of your employees.
When you get coverage, you might also qualify for tax credits. This can help to lower the amount that your company has to pay for taxes each year, and is yet another benefit that comes from offering coverage to employees.
If you have been thinking about offering coverage to your employees, it might be time to look at the options that are available during the open enrollment period.
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