Regarding the Affordable Care Act and household employees, household employers may be wondering what, if anything, they need to do in order to comply with changes in health care laws. Below are some of the topics most likely to be relevant to household employers. Please note that rules and regulations are subject to change. GTM will provide updates as they occur.
Household employers are NOT required to offer health insurance to their employee(s). Any employer with fewer than 50 full-time employees is not required to provide health insurance coverage to their staff.
Household employers MUST provide a Notice of Coverage Options. All employers must provide this notice to all current and any future employees. This will inform your employees about the coverage options that are available and the Health Insurance Marketplace. The Marketplace allows individuals to compare health insurance plans offered by private insurance companies. There are two sample notices that the Department of Labor provides, depending on whether you currently offer your employees health coverage or not.
Your employee is required to obtain health insurance coverage. While the law does not require you to provide coverage, your employee must be covered. Employees can purchase insurance through the Health Insurance Marketplace. To be eligible for health coverage through the Marketplace, your employee must live in the United States and be a U.S. citizen or national; if not a U.S. citizen, coverage can still be obtained, provided the requirements listed here are met. Plans and coverage will vary greatly from person to person; all of the information needed to get insurance can be found here.
If you wish to provide insurance for your employee(s) as a” sole proprietor”, with at least one other employee that is not an owner or partial owner of the business, you may acquire health insurance through the Small Business Marketplace for your employees. Group coverage can sometimes be obtained outside of the Marketplace for sole proprietors with one or more employees.
Should you not wish to offer coverage to your employees, they can apply for coverage on the Individual Exchange. Household employees may qualify for a tax credit on their monthly premiums. Depending on income level and size of household, individuals may qualify for premium tax credits and other savings on an Individual Exchange plan. Employees can apply part or all of this tax credit each month to their premium payments. Any earned tax credit not applied towards the monthly premium will be applied as a lump sum on the individual’s tax return. Use the chart at www.healthcare.gov/lower-costs/ to help your employee see if they qualify.
For more information, please contact GTM Employment Benefits at (888) 432-7972.