Do I have to pay my employee’s healthcare?
If you hire 50 full time equivalent (FTE) US workers or more, you will be responsible for paying for a portion of their healthcare. If you do not do this, your business will be subject to a tax penalty. You can choose to provide healthcare if you employ less than 50 full time workers, and may also be eligible for tax credits. Alternatively, you can offer a defined contribution plan.
An international business with a subsidiary in the US is expected to contribute to its employee’s healthcare if there are 50 or more full time equivalent (FTE) US workers. Failure to do so will make your subsidiary subject to tax penalty.
However, you can choose to provide healthcare if you employ less than 50 full time workers. To make this more affordable for you as a business, you may be able to benefit from tax credits.
Alternatively, you can offer your US workers a defined contribution plan. This would mean that your employees are directed to the state health insurance exchanges, and you then provide a healthcare reimbursement plan to reimburse your employees for a portion of their policy.
If you would like to use the services of Foothold America, we will invoice you monthly and pass the healthcare costs on without additional fees.
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