Businesses with 49 or fewer employees have no obligations under the Affordable Care Act (ACA) to provide health insurance or meet other mandates required of larger employers.
No ACA Employer Mandate
- Businesses with fewer than 50 full-time equivalent employees (FTEs) are not required to:
- Offer health insurance to employees.
- File ACA forms such as 1095-C or 1094-C.
- Pay penalties for not providing health insurance coverage.
No Reporting Requirements Unless Self-Insured
- If the business does not offer health insurance, there are no ACA reporting obligations.
- If the business provides self-insured health coverage, it may need to file Forms 1095-B and 1094-B to report the coverage.
State-Level Regulations
It’s important to note that some states may impose their own health care mandates. However, the federal ACA imposes no requirements on businesses with fewer than 50 employees.
Summary:
For businesses with 49 or fewer employees, the ACA imposes no obligations to offer health insurance or file ACA-related forms, unless they voluntarily choose to provide self-insured coverage.
