The Affordable Care Act (ACA) generally applies to businesses with 50 or more full-time employees (or full-time equivalent employees). If a business has 49 or fewer employees, it is not subject to the ACA's Employer Shared Responsibility provisions, which require employers to provide health insurance to their full-time employees or face penalties.

Key points for businesses with 49 employees or fewer

Employer Mandate: Businesses with fewer than 50 full-time employees (or full-time equivalents) are not required to offer health insurance under the ACA. These businesses are not subject to the ACA's employer mandate penalties.

What to consider for businesses with 49 employees or fewer

Reporting Requirements: While the employer mandate doesn't apply, businesses with fewer than 50 employees are still required to file Form 1095-C if they provide health coverage, but they won't face penalties for not offering coverage.