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
$2,000 per Full Time Employee, not counting the first 30 Full Time Employees
Whichever is less.