According to the ACA, large employers are required to offer health insurance to their full-time employees, whereas small employers are not required to. Here’s a quick breakdown:
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- Large employers are defined as having 50 or more full-time equivalent employees.
- Small employers have fewer than 50 full-time equivalent employees.
Note, a full-time equivalent employee count is different than just counting all your full-time employees—check out this article to learn how to calculate your count.
Below is a table to help clarify some of the differences between “large” and “small” employers, except for those in the previously mentioned four states:
|Large employer||Small employer|
|Definition||50 or more full-time equivalent employees||Fewer than 50 full-time equivalent employees|
|Requirements for health insurance||Required to offer health insurance to all employees who work 30 or more hours per work||Not required to offer health insurance to any employees|
Heads up: These laws and definitions are subject to change.