How Can An Employer Provide Coverage in Multiple States?
We are a company of fewer than 6 (this includes 2 partners, independent contractors, per diem, and full time staff). Only the 2 partners reside in California where the corporation headquarters resides. All other employees (different employment status’) reside in different states as our industry is consulting services thus remote is acceptable.
1. Is there a CA law that a company with at least 5 need to have Obama Care offered?
2. Are the Partners/Shareholder considered part of the employee head count?
3. Employees are considered for their state of residence or where our corporate headquarters is located for these needs?
Answer
If an employer owns a business in more than one state, or employees reside in more than one state the ACA offers a number of options. They can choose a single multi-state health plan or use the SHOP to offer coverage in multiple states. They can also use healthcare arrangements and group health plans to get a tax advantage even if they don't qualify to use the SHOP.
The employer mandate only applies to those with 50 or more full-time equivalents, and doesn't differ based on in which state employees reside. The small business tax credit also works this way. Due to the size of the company you may be eligible for tax credits (however eligibility also depends upon average annual wages).
Partners / Shareholders aren't generally considered part of the head count. Typically owners aren't considered employees.
Learn more about employer options and the SHOP from HealthCare.Gov.
Learn more about the employer mandate.
Learn more about small business tax credits.