ACA Definition of Small Businesses Holds at 50
President Obama recently signed a bill–the PACE Act–that impacts the definition of small employer under the Affordable Care Act.
As a result of the new law, a small employer in Connecticut will continue to be defined as one having 50 or fewer employees.
State lawmakers in 2015 expanded the definition of small employer from 50 or fewer employees to 100 or fewer employees for purposes of purchasing health coverage as of Jan. 1, 2016.
But following the adoption of the federal PACE act, the state Insurance Department has postponed that planned change.
Important reminder: Count your full-time equivalents (FTEs)
You must count your full-time and full time equivalent (i.e. part time) employees to determine whether you are a small or large employer for purposes of purchasing health coverage. Here are instructions for counting FTEs.
Why this matters
Designation of your company as a small or large employer will impact the type of benefits you must offer, how your company will be analyzed for insurance purposes, and how much you will pay in premiums.
For more information, contact CBIA’s Mark Soycher at 860.244.1138 | email@example.com | @HRHotline
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