Why size matters
Health insurance laws apply differently to small and large employers. So, it
is important to know the size of your employer.
- Small employers with fewer than 50 employees do not have to cover
employees or their dependents.
- Large employers with at least 50 full-time equivalent employees face
a tax penalty, starting in 2016, if any full-time employee receives financial
help to buy health insurance through an exchange such as Healthcare.gov. The
penalty for employers with at least 100 employees begins in 2015.
- Employers with fewer than 25 full-time equivalent employees may be
eligible for tax credits to offset up to 50 percent of their premium costs.
- Self-employed people with no employees can buy an individual health
plan through healthcare.gov and may qualify for a subsidy to help with costs.
How do I know if I'm a small employer?
Under Oregon law, a small business is defined as having 50 or fewer employees. A full-time employee (FTE), under the Employer Responsibility section of the
federal Affordable Care Act, works 30 hours or more per week.
These people do not count as employees:
- Sole proprietors
- The owner of the wholly owned corporation
- A more than 2 percent shareholder of an S Corporation or limited
- The spouse of any person listed above
calculator can help you determine if you have 50 or more FTE.