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1. Affordable Care Act
Numerous provisions related to health care reform continue to affect small business owners and their employees. Beginning in 2014, most individuals will be required to carry insurance for themselves and their dependents or potentially pay a tax. While small business owners aren’t required to offer insurance to their employees, those that choose to will need to comply with reforms that take effect in 2014. Although the reporting and enforcement of the Employer Shared Responsibility provision was delayed until 2015, employers should determine their applicable large employer status and ensure that appropriate tracking of employee hours begins in 2014. A significant clarification regarding Flexible Spending Accounts (FSAs) for 2014 is that employers offering a health FSA must also offer group health insurance coverage. Also changing in 2014 is the small business tax credit for employers that offer health insurance coverage. To qualify for the tax credit, coverage must be purchased through the Small Business Health Options Program (SHOP) marketplace or be certified for SHOP-eligible coverage in states that have federally facilitated SHOP marketplaces. For more health care reform resources, visit paychex.com/health-reform.

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