Starting in 2016, businesses with up to how many employees will be defined by the ACA as a small business?

• A. 50
• B. 100
• C. 200
• D. 25

Answer: (B)

Starting in 2016, the ACA widened how many employees count as a “small business” for purposes of ACA programs, setting the threshold at 100 employees. This change expanded eligibility for the Small Business Health Options Program (SHOP) and related provisions, so firms with up to 100 employees are treated as small employers under the ACA. The 25-employee figure relates to the separate small-business health care tax credit, and the large-employer threshold for the mandate remains at 50, with the 100-employee cut-off applying specifically to the small-business designation for ACA programs.