This tool is designed to assist businesses in determining if they meet the criteria to be considered subject to the employer shared responsibility provisions under the Affordable Care Act (ACA). The calculation typically involves assessing the average number of employees a company had during the preceding calendar year. For example, a business with an average of 50 or more full-time employees (including full-time equivalent employees) in 2023 would likely be categorized as subject to these provisions in 2024.
Accurate assessment of employer size is paramount to ACA compliance. Failing to correctly classify a business can lead to significant penalties from the IRS. These provisions, introduced as part of broader healthcare reform, are designed to encourage employers to offer affordable health insurance coverage to their employees. Determining if a business is subject to these mandates is a critical first step in understanding its obligations under the ACA.
