Last Updated: January 13, 2021
The Affordable Care Act (ACA) presents a number of challenges to businesses of all types. Its use of the 30-hour threshold for determining full time and full time equivalent employees and its complicated reporting requirements present significant challenges to our industry which relies on short term and variable hour employees. It also includes a significant tax on some employer sponsored health insurance plans.
As of January 1, 2016, all employers with more than 50 employees are required to comply with all the provisions of the law. The cost of compliance is likely to be significant. Businesses with more than 50 full-time or full-time equivalent employees must pay a $2,000 fine for every employee in excess of 30 employees once one of those employees qualifies for a federal subsidy. They may also face a $3,000 per employee penalty if they do offer coverage but the plan is deemed to not be affordable or doesn’t meet minimum coverage standards.
NACS opposed the ACA, and is presently working with the administration and Congress to ensure the law’s implementation minimizes burdens on convenience retailers. For example, NACS is working with various coalitions to change the definition of full-time employee to one who works 40 hours/week (instead of 30). NACS is also working to make the reporting requirements on businesses less burdensome.