Employee or Subcontractor & Obamacare
Firms with 100 or more full-time employees in 2015 must offer a reasonable level of affordable insurance to their full-time employees or large penalties will be due. Business with 50 to 99 full-time employees have until 2016 to comply with the pay-or-pay rules. Reclassified workers can put a small firm over the limit of allowable full-timers and trigger the employer mandate to offer health insurance. The issue has always been a hot-button for IRS and auditors, but health care reform has magnified its importance. Be certain that you have classified workers properly. IRS has worked to more clearly define the tests for subcontractors and employees. If you are unsure, contact us and we can help you make the correct classifications for you workers.