Small business owners take heed. You know that there will be a new health insurance mandate next year. You may already know that it is based on the number of employees in your company. What you may not know, however, is that the calculation to determine whether you have to offer health insurance to your employees will be based on the number of employees you have in 2013, not 2014.
According to regulatory guidance issued by the government on Dec. 28, 2012, only businesses with less than 50 “full-time equivalent” employees this year will be exempt from the “employer mandate” provision in 2014. To calculate, owners have the choice of averaging all 12 months of 2013 or taking a six-month period during the year. Basically, owners need to adjust or manage the size of their staffs now, not next year if they are near the 50 FTE mark.