There’s a lot of work that goes into developing and guiding the growth of a company. Every stage of the process brings new challenges to overcome. If you are nearing the threshold of employing 50 or more people, there are a few federal laws and regulations that will soon apply to your company. It’s best to stay abreast of these regulations in order to be able to avoid any possible fines.
The Affordable Care Act
The federal government requires any employers with 50 or more full-time employees to comply with the Affordable Care Act. Under the Act, you must ensure that your full-time employees have access to affordable health insurance. Otherwise, you will have to pay an assessment.
In addition, you will have new reporting requirements. Once you start complying with the Act, you will have to report information concerning your company’s healthcare coverage to the IRS.
The Family and Medical Leave Act
Once you hire on your fiftieth employee, you must allow your employees to take leave from their job in accordance with the Family and Medical Leave Act (FMLA).
FMLA gives employees job protection for taking up to twelve weeks of leave a year for things such as the birth of a child or a serious health condition of a family member. If an employee takes the proper steps to apply for FMLA leave, you must hold their position and give them their job back when they return, but you do not have to pay them during their leave. You must also maintain their healthcare coverage while they are on leave.
It can take some time for your company to adjust to all of the new requirements that come with employing fifty people. Once you overcome these challenges, you can continue on to your company’s next growth milestone with confidence that you are in compliance with the law.