The Affordable Care Act is quite complicated and contains pitfalls for unsuspecting employers both large and small. The Act was signed into law in 2010, and some parts have already taken effect. Other parts of the law will take effect over the next few years. In 2015, organizations with 100 or more full time equivalent employees will generally be required to provide health insurance or face stiff penalties. Those with 50 to 99 must provide coverage starting in 2016. Failure to do so can result in substantial penalties. Even small employers with as few as 2 employees can incur penalties for providing insurance that does not meet the requirements of the Act.
The law and regulations have been changing quickly and more revisions are expected. The IRS and the Department of Labor have issued Questions and Answers on various sections of the Act. Employers should be cautious and stay updated. Be sure to also consult with your insurance advisor. You can obtain further information from the following government websites.
www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home