ACA Employer Penalties

The Affordable Care Act has been around for a while and by now most people are well aware of the potential tax penalty individuals may have to pay if they do not carry ACA qualified health insurance . However the ACA legislation also levied tax penalties at businesses both small and large. Below are two of the most important ones that your business should be aware of.

The Cadillac Tax

  • Scheduled to take effect in 2018
  • Business of all sizes are potentially at risk for this penalty.
  • Could potentially affect up 25% of all businesses.
  • What is it? 40% excise tax on the portion of employer-sponsored health coverage that exceeds $10,200 a year for employee only and $27,500 for families.
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Pay or Play Tax

  • Goes into effect January 1st, 2015
  • Companies with 100 or more Full Time Equivalent Employees
  • What is it? Requires employers to provide health insurance to their employees in 2015 or pay a tax of up to $2,000 per employee.
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