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BusinessSizebased
onnumberof full-time
equivalentemployees (FTE)
Subject toapenalty
of$2,000per full-time
employee, excluding thefirst
30employees.
Subject toapenaltyof $3,000
per full-timeemployee
purchasing insuranceand
receivingasubsidy through
theHealth Insurance
Marketplace, up to thecap
of $2,000 times thenumber
of full-timeemployees,
excluding thefirst 30
employees.
1-25
No
No
26-49
No
No
50+without employer-provided
coverage
Yes
No
50+with employer-provided
coverage deemed unaffordable,
or not providingminimum value
No
Yes*
BusinessSize
basedonnumberof
full-timeequivalent
employees (FTE)
Eligible forSmall
BusinessTax
Credits
Eligible for the
SHOPMarketplace
Eligible topurchase
fixed-contribution
coverage
throughaprivate
marketplace*
1-24
Yes
Yes
Yes
25-50
No
Yes
Yes
51-100
No
Yes, starting in 2016**
Yes
100+
No
No***
Yes
Chart 1:
Penaltiesby
business size
and coverage
Chart 2:
Marketplace
eligibilityby
business size
* Requirementsmay vary based on individual private exchange requirements, but generally these aremore flexible.
** Before 2016 statesmay limit SHOPparticipation to employeeswith nomore than 50 employees. Almost all states
and the federal government have limitedSHOPparticipation to such employees.
*** However, federal and statemarketplacesmay choose toopen theSHOP to employerswith 100+ employees in 2017.
Appendix:
*The employer pays the lesser of the two amounts in columns 2 and 3.
Note: Starting in 2015, businesseswith 100 ormore full-time equivalent employees need toprovide affordable,
minimum value health care coverage to 70percent of all full-time employees and their dependents, unless the
employer qualifies for 2015dependent coverage transition relief, or face a penalty.
In 2016, the 70percent threshold is increased to95percent, and the shared responsibility penaltieswill also apply to
employerswith 50ormore full-time equivalent employees.
