THE SHOP

Restyling & Truck Accessories - May '15

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restylingmag.com May 2015 | Restyling & tRuck AccessoRies 47 percent of our member employers plan to look at private exchanges as possible sources for health insurance." More information about private health exchanges can be found through an organization called The Private Exchange Evaluation Collaborative at THEPEEC.com. Public ExchangEs Employers can also take advantage of a third type of exchange: the state public exchanges at which people can shop for a health insurance plan that meets the ACA minimum coverage guidelines. Smaller employers who decide health insurance is too expensive to provide as a benefit might decide to send their employees to these marketplaces to shop for coverage. But which employers can send their workers to the public exchanges without incurring fines? This is a good point to cover one of the more confusing parts of the ACA legislation: the employer man- date. This term refers to the requirement that employers of a certain size must either offer health insurance to their workers or pay financial penalties. The threshold for the employer man- date is defined by the number of full time equivalent employees (FTEs) at the business. As of Jan. 1, 2015, businesses with 100 or more FTEs must provide health benefits to at least 70 percent of their full-time employees (95 percent by 2016) or pay a $2,000 annual penalty for each employee, excluding the first 30. The deadline is later (Jan. 1, 2016) for businesses with 51 to 99 FTEs. Employers with 50 or fewer FTEs are not required to offer any coverage at all. These are the employers who are most likely to either utilize the SHOP exchange described earlier in this article, or send their workers to the public exchanges, since doing so will not result in an ACA fine. (One final thing about FTEs: Only organizations with fewer than 25 of them can take advantage of the tax credit discussed earlier in this article). Unfortunately, calculating the FTE

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