Employer Shared Responsibility

For companies with 50+ employees, the employer shared responsibility provisions (also known as “pay or play”) require applicable large employers (“ALEs”) to offer affordable health insurance that provides a minimum level of coverage to full-time employees (and their dependents) or pay a penalty tax.

What you need to know:

•   How to determine if a company is subject to the penalty;
•   How to determine large employer status (calculating the number of full-time employees);
•   How to determine the full-time status of employees;
•   How to determine if a penalty applies; and
•   How to calculate the amount of a penalty payment.

The ACA requires ALE’s to provide information and reporting under IRS Sections 6055 & 6056. Even though the individual mandate penalties have been diminished, the forms 1094 and 1095 are still required by law. Failure to comply can result in fines and penalties. The IRS began levying fines last year for 2015 violations.

Make sure you are ready with HR360’s step-by-step guidance on calculating pay or play penalties. Our attorney-reviewed guide makes it easy to understand how to calculate penalties. For more information or details the articles and guides can be found on HR360. A login is provided at the bottom of the page.