{"id":355829,"date":"2016-04-04T10:46:17","date_gmt":"2016-04-04T15:46:17","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/healthcare\/patient-rights\/obamacare-small-business-compliance-with-the-affordable-care-act.html"},"modified":"2026-08-17T16:10:00","modified_gmt":"2026-08-17T21:10:00","slug":"obamacare-small-business-compliance-with-the-affordable-care-act","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/healthcare\/patient-rights\/obamacare-small-business-compliance-with-the-affordable-care-act.html","title":{"rendered":"Small Business Compliance With the Affordable Care Act"},"content":{"rendered":"\n
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Small Business Compliance With the Affordable Care Act<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Affordable Care Act<\/span> (ACA<\/span>) is a federal law requiring businesses with 50 or more full-time employees to provide affordable healthcare<\/span> insurance or pay a penalty. This rule, known as the employer mandate<\/span>, applies to businesses that must comply. Businesses must meet affordability thresholds and reporting requirements or face IRS penalties.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

The Patient Protection and <\/span>Affordable Care Act<\/span>, sometimes called \u201cObamacare,” was enacted in 2010 to require employers with more than 50 full-time employees (Applicable Large Employers<\/span> or ALEs) to provide health insurance<\/span> for their employees. The ACA<\/span> also eliminated restrictions on pre-existing conditions<\/span><\/a> that had prevented some individuals from obtaining health benefits<\/span>.<\/p>\n

Small business owners<\/span> may find ACA<\/span> compliance complicated on paper. The requirements for small business <\/span>health insurance<\/span> depend on the number of employees and whether an employer offers group health care<\/span> plans.<\/p>\n

The ACA also covers individual coverage through private insurance plans. The outcome of the ACA was affordable coverage for more Americans. Keep reading to learn what employers and employees should know about ACA requirements, coverage rules, and how workplace health plans must comply with the law. You can also consult a local small business attorney<\/a> for targeted legal advice.<\/p>\n

ACA<\/span> Business Requirements: Employers With 50+ Employees<\/strong><\/h2>\n

The ACA<\/span> requires health insurance<\/span> plans<\/span> for businesses with 50 or more full-time or full-time equivalent employees<\/span><\/a> who work 30 or more hours per week. These ALEs are required to:<\/p>\n