October 29, 2014
As a reminder, the employer shared responsibility (penalty) portion of the Affordable Care Act will be applied beginning on January 1, 2015. Therefore, all large employers (generally employed 100 or more full-time employees during 2014) are required to offer affordable health insurance to their employees that provides minimum essential coverage. Large employers who fail to do so will be subject to a shared responsibility payment (penalty).
For 2015 there is transitional relief from the penalty for businesses that employed between 50 and 100 full-time equivalent employees during 2014. To be eligible, an employer must meet the following conditions:
If they do not meet these conditions, then the definition of a large employer is 50 or more full-time employees during 2014.
Generally, a large employer will be subject to a shared responsibility payment (penalty) for 2015 once at least one full-time employee receives a premium tax credit and:
The affordability standard is not met if an employee’s required contribution for self-only coverage exceeds 9.5% of their income.
The minimum value standard is not met if the employer’s plan pays less than 60% of covered expenses.
The definition of full-time equivalent employees includes all full-time employees plus the full-time equivalent for part-time employees.
An employee is considered full-time for a calendar month if they average at least 30 hours of service per week or 130 hours of service per month. The full-time equivalent for part-time employees is calculated as the total hours for each month of all part-time employees divided by 120.
For more information on the employer shared responsibility payment see:
2018 Federal Return and Taxpayer Expectations
January 30, 2019
Reminder of 2018 Itemized Deduction Changes
January 16, 2019
Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)
January 9, 2019
Reminder of Form 1040 Redesign
January 2, 2019
Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018