Many clients have been asking about the potential employer penalties under the Patient Protection and Affordable Care Act. Although many details of practical applications of the new law are still murky as states work to establish (or not establish) their health exchanges, the penalties under the law are well defined. The first thing to know is if you have fewer than 50 full time equivalent workers, whether you provide health insurance or not, no penalty will apply. If you have more than 50 full time equivalent employees, you may be eligible for a penalty if you do not provide health insurance to your workers or the coverage you provide is considered unaffordable. Below is an image to help you assess whether a penalty may apply.
Clearly, there is more information you will need in order to determine whether a penalty applies, such as what is a full-time equivalent employee, what is considered affordable coverage, how might an employee be eligible to receive an exchange plan premium credit,
To answer these questions, I encourage you to read a the Summary of Potential Employer Penalties Under the Patient Protection and Affordable Care Act (PPACA) published by the Congressional Research Service. http://www.ltgov.ri.gov/smallbusiness/employerprovisions.pdf
