Affordable Care Act Tax Provisions for Small Employers

Some of the provisions of the Affordable Care Act, or health care law, apply only to small employers, generally those with fewer than 50 full-time employees, including full-time equivalent employees.

If you have fewer than 50 employees, but are a member of a group with a certain level of common or related ownership with 50 or more full-time employees, including full-time equivalent employees, you are subject to the rules for large employers.

Here are the responsibilities and benefits for small employers under the health care law:

Coverage Reporting Payments & Credits
  • You must withhold and report an additional 0.9 percent on employee wages or compensation that exceeds $200,000. Learn more.
  • You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.
  • If you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover.  Learn more.