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Which Employers Are Affected?

Several of the Act’s changes apply only to employers that have specified numbers of employees. Here is a brief summary of the limitations.

Act Provision Applies to Employers with:
SHOP Exchange eligibility* 100 or fewer employees**
Small employer tax credit for providing health coverage 25 or fewer employees**; $50,000 maximum average wage
Penalty for not providing minimum essential health coverage or affordable coverage 50 or more employees**
Simple cafeteria plans for small businesses 100 or fewer employees**
Automatic enrollment in employer health plan Employers that have more than 200 employees** and offer health coverage
Grants for wellness programs Fewer than 100 employees who work for 25 or more hours a week

* Beginning in 2017, states may loosen restrictions on SHOP Exchange eligibility.

** Full-time or full-time equivalent employees.