The recent health care legislation of 2010 will impact your business. There are many complex rules and exceptions that you should be aware of:

  •  It does not require employers to provide health care coverage to employees but does include “Play or Pay” language.
  • It creates a Small Business Health Options Program (SHOP exchange) that smaller businesses can use to buy health insurance coverage.
  • For 2010 through 2013, there is a Small Employer Health Insurance Tax Credit (for businesses with 25 or fewer full-time employees) of up to 35% of the employers’ contribution towards employees’ coverage.
  • Larger employers (average of at least 50 full-time employees) that fail to provide adequate minimum essential health care coverage will be subject to a penalty.
  • Employers with more than 200 full-time employees will be required to automatically enroll employees in its health insurance plan.
  • Many employers providing coverage will be required to file information about their coverage with the IRS.
  • Health insurance costs must be reported on employees’ W-2 forms.
  • It imposes new restrictions on FSA’s, HRA’s, HSA’s and Archer MSA’s.

For more information about your eligibility for the Small Business Health Care Tax Credit visit the IRS.