Ask a CPA

For more info on the Affordable Care Act and other labor resources go to: https://www.dol.gov/ebsa/faqs/main.html

Beginning in 2018, there will be a 40 percent excise tax levied on insurance companies when insurance premiums exceed certain amounts. This new tax won’t be levied on the employer unless they provide self-funded plans. The tax applies to the extent that yearly premiums exceed $10,200 for single coverage and $27,500 for family coverage.

No. Only large employers will face penalties for not providing insurance to employees. Under the new ACA law, small businesses with less than 50 employees are exempt from the penalty for not offering coverage to their employees.
Small businesses that do offer insurance to its employees may qualify for a tax credit as an incentive.
For companies with at least 50 employees, there are penalties if the business does not offer health insurance.

SHOP (Small Business Health Options Program) is a small business marketplace set up by your state where employers with 50 or fewer employees can buy health insurance for their employees. For more information, visit your state health website.

Employees under the age of 26 may be eligible to be covered under their parent’s health plan

Generally, uninsured individuals who purchase health insurance through an online health insurance marketplace or exchange and have income no greater than $94,200 for a family of 4, may be eligible for a government subsidy to help pay for health insurance.
The subsidy will be in the form of a tax credit.The credit or subsidy will be applied to your insurance premium when you purchase it in 2014.
To figure out if you’re eligible for a subsidy, you need to determine your household size and household income and see where it falls within the federal poverty line.
Subsidies are available up to 400% of the federal poverty line. Up to 133% of the federal poverty line, a family needs to devote 2% of its income towards the premium, with the balance subsidized by the government. The subsidy then decreases as income goes up.

If you can’t afford health insurance, subsidies are provided. The Affordable Care Act is designed to provide a subsidy or tax credit to low and middle income individuals so they can afford to buy health insurance. People who purchase insurance through an exchange may be eligible for the Premium Assistance Credit.
The credit is refundable and payable in advance directly to the health insurer. The individual will then pay the difference between the total premium and the credit. For employed individuals, the premiums can be made through payroll deductions. Direct subsidies are also available.

1- Health Insurance Marketplace referred to as a health exchange. it began in 2014, this program helps a person find health insurance that fits their budget. The exchange is run by the state or federal government and it results in a private insurance policy.
2- Job-based coverage is when employer offers health insurance coverage. You may be eligible to receive it, including your spouse or dependents. Employers may decline coverage for certain reasons such as for part-time workers, but not for health related reasons.
3- Medicaid: Each state offers Medicaid for lower income people or for the elderly or people with disabilities.
4- Private policy: these health plans will cost the same whether acquired directly or through an insurance exchange. Subsidies will apply only if you are using an insurance exchange.

The 2016 penalty is the greater of: $695 per year ($2,085 maximum per family), or 2.5% of household income.
There was no penalty in 2013. The penalty is phased in over time. Beginning in 2014, U.S. citizens and legal residents must carry health insurance or be subject to a penalty.
The 2014 penalty was the greater of: $95 per year ($2,085 maximum per family), or 1.% of household income.
The 2015 penalty was the greater of: $325 per year ($2,085 maximum per family), or 2.% of household income.

There is no government run insurance plan or single payer system established under the Affordable Care Act. The government will only run the health care exchanges and the insurance industry will still be run by private companies.
Public exchanges will be available in all 50 states and 4 levels of health care insurance will be offered. They are platinum, gold, silver and bronze. Each insurance plan will offer the “minimum essential coverage”, which is needed to avoid paying a penalty. Private exchanges will be available as an alternative to the public exchanges.