How Does the Affordable Care Act Impact Your Small Business? [INFOGRAPHIC]

On March 31, 2014, the Affordable Care Act will make health insurance mandatory for most Americans. Most employees will be required by law to have health coverage or pay a tax penalty that will continue to increase annually:

  • In 2014, the penalty will be $95 per adult and $47.50 per child (up to $285 per family) or 1% of taxable household income, whichever is greater.
  • In 2015, the penalty will be $325 per adult and $162.50 per child (up to $975 per family) or 2% of taxable household income, whichever is greater.
  • In 2016, the penalty will be $695 per adult and $347.50 per child (up to $2,085 per family) or 2.5% of taxable household income, whichever is greater.
  • After 2016, the penalty will continue to increase annually based on the increase to the cost of living.

As a small business owner, you may be wondering how this legislation affects you, or perhaps you are receiving questions from employees about their healthcare options under the new law. Regardless of how many full-time equivalent* employees you have or whether you plan to offer a group insurance plan, there are ways that you can help your employees maximize the benefits of the ACA.

Click to enlarge the infographic below and follow the decision tree inside to figure out the options that are available for your small business and your employees.

*The “full-time equivalent employees” count is the combination of full-time employees (any employee who works 30 hours or more per week in any month) plus the number of full-time equivalent employees represented by your part-time workforce (calculated by taking the hours worked by all part-time employees in a month and dividing that amount by 120). Seasonal employees who work less than 120 days in a calendar year are excluded from this equation. For more information on calculating your FTE, see this post from The Washington Post.

Affordable Care Act for Small Businesses

Infographic by Column Five

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About Tammy Lam

Tammy Lam is on Intuit's small business communications team. She lives in San Francisco and loves using mobile apps to explore the city's endless array of local restaurants and nightlife. Follow her on Twitter at @Tam_Lam and share your favorite spots!
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Ralph Ruffolo
Ralph Ruffolo

We lost money in our small business last year, so it looks like we are not eleible to take a Small business healthcare tax deduction.  So we are on the hook for all of the premiums we paid for our employees.  So I need to make a profit to take the deduction, even though I paid the employees premiums.  That blows if this is right. 

Ralph Ruffolo
Ralph Ruffolo

I am confused by your info graphic above.  It says my insurance plan is considered unaffordable if it costs more than 9.5% of family income, but you say a plan could cost as much as $5625 for an individual or $15,600 for a family.  My wife and I are in our 60's and we pay $15,240 for a $7500 deductible HSA plan. We only earn $70,000 so this is 21.77% percent of our income before considering deductible.  With deductible this is 32.48% of our income.  If we were to use the ACA our premiums would be the same but deductible goes to $12,636.  What am I missing here?

Our insurance plan is unaffordable, but there is nothing out there that is affordable?

Ralph Ruffolo

Terry L Amstuz
Terry L Amstuz

The ACA is an unmitigated disaster. But what would you expect from a commander-in-chief that would lie before Benghazi, during Benghazi and after Benghazi.


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