The employer mandate of the Affordable Care Act kicks into effect beginning January 1, 2015. This bill has caused a lot of confusion, and some businesses have simply opted to pay the fines rather than try to navigate the murky waters of compliance. Here is what business owners and managers need to know this year regarding health care insurance coverage for employees.

Companies with 50 or Fewer Full-Time Employees

These small businesses are exempt from the Affordable Care Act employer mandate. However, many small businesses still offer health insurance coverage as part of their overall benefits plans. As the penalties and fines under the individual mandate increase, more workers will be attracted to working for companies that offer some kind of health coverage.

Companies with 100 or More Full-Time Employees

These small to mid-size businesses are not exempt, and by law must offer some type of health coverage. Some employers opt to contribute to plans the employees purchase for themselves, while other companies decide to purchase group coverage for all workers. For businesses that are nearing the 100-employee mark and which need to be able to grow the business without falling into the employee mandate territory, they can expand their business by using answering services and other outsourcing means to meet customer demand, without hiring more workers and being subjected to the mandate.

What Every Employer Should Know

Each year that the Affordable Care Act remains in effect, the penalties and fines for non-compliance get steeper. While many companies are opting to pay the fines until health insurance premiums stabilize, this is not a viable long-term solution. Beginning in 2015, the IRS will be responsible for collecting those fines. Visit IRS.gov for up-to-date information on compliance, penalties, and the types of health insurance plans required under the employer mandate.

You can find affordable answering services to expand your business without topping the 100-employee mark by calling Personalized Communications at 800-606-9898