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Employer Shared Responsibility

In 2015, employers of with a certain amount of full-time employees will be subject to the Employer Shared Responsibility, which means that the employer must offer affordable health benefits. This is due to the Affordable Care Act updating the Internal Revenue Code.

How many employees must a business employ to be subject to the Employer Shared Responsibility?

Any employer who employs at least 50 full-time employees, or a combination of full-time and part-time employees where the full-time employees number at least 50. Full-Time Employee is defined as “an individual employed on average of at least 30 hours a week.”

What happens if an employer of at least 50 full-time employees does not offer health benefits?

If an employer of 50 or more full time employees does not offer at least a minimum level of affordable health coverage to their full-time employees and their dependents, the employer may be subject to an Employer Shared Responsibility payment.

How does an employer determine if the coverage offered is considered affordable?

If an employee’s share of the premium for employer-provided coverage would cost the employee more than 9.5% of that employee’s annual household income, the coverage is not considered affordable for that employee.

Does the Employer Shared Responsibility provision also apply to non-profit organizations?

Yes, this provision applies to all employers of 50 or more full time employees; non-profit, for-profit, and government entities all apply.

What if the employer has employees who are eligible for health coverage through another means, such as a spouses policy or Medicare. Do they still have to offer health benefits?

Yes, as long as an employer has at least 50 full-time employees, they must offer health benefits, even if some of their workers have access to health benefits through a spouse or medicare.

Have more questions about the Affordable Care Act and the changes it will mean for small businesses,? Need a quote for group benefits? Contact us online or by calling our office at (714)482-9500.


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