Employer Requirement to Provide Coverage

Effective January 1st, 2015 (Delayed from January 1st, 2014) 

Grandfathered and Non-Grandfathered Group Plans over 50 Full Time Equivalents

 

Employer Pay or Play Provision

Employers with more than 50 Full Time Equivalent Employees must provide Essential Minimum Coverage to all Full Time employees working on average more than 30 hours a week.  This provision goes into effect January 1st. 2015.  It was originally scheduled to start January 1st, 2014, however, a released by the IRS in early July delayed this requirement.

In 2015, if an Employer who meets this standard chooses not to offer coverage, they will face the following fine, know as the Shared Responsibility Fine.

$2,000 per Full Time Employee, not counting the first 30 full time employees.

 

Employer Shared Responsibility Fine

Effective January 1st, 2015 (Delayed from January 1st, 2014)  Grandfathered and Non-Grandfathered Group Plans over 50 Full Time Equivalents

If an employer who is over 50 Full Time Equivalent employees provides coverage, and the employee only portion of premium exceed 9.5% of that employee’s annual household income, that employee is then eligible for an Individual Health Insurance Premium Tax Subsidy.  If that employee chooses to use that subsidy, the employer will face a fine.

The fine is $3,000 for every employee receiving a tax credit

-or-

$2,000 per Full Time Employee, not counting the first 30 Full Time Employees

Whichever is less.

To read more on the Employer Requirements for Large Employers visit the SHRM website here.

 

About Optimized Benefits

Optimized Benefits is a Boutique Firm dedicated to providing smart solutions to the small and mid-sized business owners and their Employee Benefits plans
we have a focus on Retirement (401K) and Group Health plans

Contact Us

55 W Wacker Dr 14th Floor
Chicago IL 60601

312 263 1590 X 101

Gene@optbenefits.com

Check out the background of this investment professional on FINRA’s BrokerCheck: http://brokercheck.FINRA.org