As a small business owner, it’s critical you provide your employees with comprehensive employee benefits such as health insurance options. But many small business owners have a limited understanding of their insurance requirements, and so within this latest post, we’ll provide our guide to employee benefits and health insurance in Marin County.
Some states require you to provide disability insurance to your employees. Make sure you review the requirements in your state when building your health insurance program. This can help ensure you’re meeting your legal obligations.
New employees must be offered health insurance within 90 days
If you offer health insurance as part of your employee benefits to your Marin County employees, they must be informed of their health insurance options within 90 days of their start date.
Number of FTEs determines health insurance obligations
The ACA sets out the policy for determining the health insurance obligations as it relates to the number of staff working at the company in either a full-time or part-time capacity. Your business’s FTE (Full-Time Equivalent) number determines your obligations. To calculate your FTE, begin with the total number of full-time employees. Then divide the number of hours worked by your part-time employees by 30 and combine the two numbers. This gives you your full-time equivalent number. Small businesses with an FTE below 50 do not face penalties for not offering health insurance. However, companies with an FTE above 50 must offer health insurance or face ACA fines.