TweetFeed Wordpress Plugin by

Your Restaurant and the Affordable Care Act

Since the enactment of the Affordable Care Act in 2010, employers have slowly seen the impacts of this new healthcare mandate. Initially, many were concerned with the impacts on healthcare and insurance industries, but those working in the restaurant industry may only now be feeling its full force. For instance, the complex requirements of the law’s employer mandate, regarding applicable large employers, phased into the industry at the beginning of this year. Due to the nature of the restaurant industry, the Affordable Care Act poses a unique set of concerns for your business, and with the risk of large penalties and fees, the ACA is just as large of a concern for your employees as it is for your business.

To first grasp the potential impacts of the Affordable Care Act on your restaurant, you’ll first need to consider whether or not you fit the bill. For instance, smaller restaurants with fewer than 50 employees are exempt from the ACA’s employer responsibility requirements. If you’re teetering on the edge of inclusion, then it may be time to sit down and reflect on your business plan, as passing the threshold for the number of full-time employees (or equivalents) can bump you into the inclusion for the ACA mandates and may drastically impact your restaurant’s healthcare.

If you’ve been coasting along in this category without having offered health insurance at an affordable price to your employees, then you’ve likely already felt the pressure of penalties. Rather than skirting the issue any longer, your restaurant should meet with human resources, payroll, and management to devise the best way of incorporating these new policies into your business plan. Then, discuss your company’s approach to communicating on the best plan and informing employees.

Plan to file ACA-required reports with the Internal Revenue Service and employees in early 2016, and prepare by tracking data for the current year accurately. Keep in mind that as the years progress, the requirements become more strictly enforced and more stringent, and harsher penalties are phased in each year.

Comments are closed.