Penalties for Small Business With 10 or Less Employees?
We are a small business and do not provide health insurance for our employees – are we subject to any penalties? We wish we could provide but do not have the funds to do so. Your help is appreciated.
Answer
Small businesses with 10 or less employees don't owe the fee, but could qualify for tax credits for up to 50% of employee premiums.
Small businesses with fewer than 25 full-time equivalent workers, making less than $50,000 in average annual wages, qualify for tax credits through the shop to help them provide health benefits to employees. Those 10 or less full-time equivalent employees, with average annual wages of less than $10,000, can get the full tax credit of up to 50% of their share of employee premiums.
Small businesses can use the tax credits to help attract employees with great benefits without breaking the bank.
Only businesses with 50 or more full-time equivalent employees, who have employees who get cost assistance on the health insurance Marketplace, owe the fee for not providing coverage.
Learn more about how small businesses can save big bucks on employee health care with small business health care tax credits when they use the SHOP.
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I am a part time employee, start date 7/2012, 15 hrs week, now hours reduced to approximately 10-15 hours weekly. Can my employer offer me insurance. Is their any assistance available?
Employers can offer insurance to part-time employees, but it is not mandated. If your employer offers coverage and it is “affordable” (defined here https://www.healthcare.gov/glossary/affordable-coverage/), then you would take that. If you don’t get offered that, assistance is based on “MAGI” income for the year (https://www.healthcare.gov/glossary/modified-adjusted-gross-income-magi/).