One Household Employee & Health Insurance - California
The Affordable Care Act requires most individuals to have health insurance, but as an employer of less than 50 employees, you are not required to provide this benefit. If you only have one household employee, the easiest way for everyone to be compliant (and healthy!) is for your employee to purchase a health insurance policy on the California marketplace. It’s a great resource and easy to navigate.
Also, if your employee earns less than $48,000 per year, they might qualify for federal subsidies to lower the premium costs.
Another way to lower costs is for you to contribute. Although not required to by law, contributing to your employee’s health insurance premium benefits both parties because any money paid by you is considered non-taxable compensation.
Please Note: Families that have two or more household employees must purchase a group policy through SHOP if they want their contributions to be non-taxable. If you have more than one household employee, there are other options to consider that are not covered here.
The information herein is general in nature and may not be applicable to or suitable for your specific circumstances. Accordingly, the information is not intended to be providing legal or tax advice, and should not be relied upon without the advice and guidance of a professional tax or legal advisor.