ACA Compliance — plain-language guidance for small business owners navigating the employer mandate.
The Affordable Care Act creates specific obligations for businesses that cross certain employee thresholds — and the rules around who counts as a full-time employee, what coverage must be offered, and what the reporting requirements are can be genuinely confusing. Kain Carlson helps ND and MN business owners understand exactly where they stand and what they're required to do, without the legal jargon.
Employer Mandate
What the ACA requires from businesses with 50 or more full-time equivalent employees — the ALE threshold and what it means for your coverage obligations.
Learn More →02 — Small Business OptionsSmall Business Options
What's available for businesses under 50 employees — SHOP marketplace options, small group plans, and how the rules differ for smaller employers.
Learn More →03 — Reporting RequirementsReporting Requirements
1094-C, 1095-C, and annual IRS reporting obligations explained — what's required, when it's due, and what happens if you miss a deadline.
Learn More →Common ACA Questions for ND & MN Businesses
The ACA rules are genuinely complex for businesses in the 20 to 60 employee range — especially when part-time, seasonal, or variable-hour workers are involved in the full-time equivalent calculation. Kain Carlson works with ND and MN business owners to answer the practical questions that matter for your operation, and helps you build a benefits program that meets your obligations while serving your team.
ACA compliance questions for North Dakota and Minnesota business owners
Businesses with fewer than 50 full-time equivalent (FTE) employees are not required by the ACA to offer health insurance. Businesses with 50 or more FTEs are subject to the Employer Shared Responsibility provisions and must offer minimum essential coverage or face potential penalties.
A full-time employee works 30 or more hours per week. Part-time employees are aggregated: total their monthly hours and divide by 120 to get your part-time FTE count. Add full-time and part-time FTEs together to determine if you cross the 50-employee threshold.
Minimum essential coverage is employer-sponsored coverage that meets ACA standards for affordability (employee premium cannot exceed ~9.12% of household income) and minimum value (plan must pay at least 60% of covered healthcare costs). Most standard small group plans automatically qualify.
Businesses with 50+ FTEs that don't offer coverage may face a penalty of $2,970 per full-time employee (2024 rate, adjusted annually) if at least one employee receives a premium tax credit through the Marketplace. Penalties only apply to the portion of employees beyond 30.
Businesses with 50+ FTEs must file Forms 1094-C and 1095-C with the IRS annually and provide 1095-C forms to each full-time employee by January 31. Businesses with fewer than 50 FTEs have no ACA reporting obligation unless they are self-insured.
ACA requirements have been subject to regulatory and legislative changes since 2010. The affordability threshold, penalty amounts, and reporting requirements are adjusted annually. Working with a current benefits advisor ensures your compliance strategy reflects the current rules — not last year's.