GDP Blog

Find Out If You Will Have A Penalty On 1/1/2016

Posted by John Powter

Apr 26, 2015 9:27:00 AM

On January 1st, 2016 employers with 50 or more full-time employees will be applicable large employers and subject to the ACA. If you have 50 or more FTE you need to start planning now to avoid the rush during the 4th quarter.   We have shared this  guide for you to help navigate the maze of regulations. For more information or for any questions please contact your GDP Advisor at 800-473-8697

The health care law contains tax provisions that affect employers. The size and structure of a workforce – small, or large – helps determine 
which parts of the law apply to which employers. The number of employees an employer has during the current year determines whether it is an applicable large employer (defined below) for the following year.

  • Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees.
  • Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.
  • Calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates during the year

50_or_less

50-or-More-Button

 

SHOP Eligibility

 Information Reporting

  • Self-Insured Employers: All employers, regardless of size, that provide self-insured health coverage must file an annual return for individuals they cover and provide a statement to responsible individuals (generally the person who enrolls one or more individuals).
  • The first information reporting returns are due to be filed (and furnished) in 2016 for the year 2015. This rule is optional for 2014.

 Credits and Payments

  1. Cover at least 50 percent of employees’ premium costs
  2. Have fewer than 25 full-time equivalent employees with average annual wages of less than $50,000 and
  3. Purchase their coverage through the Small Business Health Options Program.

 Employers with fewer than 50 full-time employees or full-time equivalent employees are not subject to the employer shared  responsibility provisions.

SHOP Eligibility

Information Reporting

  • Applicable large employers must file an annual return (and provide a statement to each full-time employee) reporting whether they offered health insurance, and if so, what insurance they offered their employees.
  • The first information reporting returns are due to be filed (and furnished) in 2016 for the year 2015. This rule is optional for 2014.

 Payments

 

 

*Various forms of transition relief are available for 2015, including for applicable large employers with fewer than 100 full-time employees (including full-time equivalent employees). Full details are available in the transition relief section of the employer shared responsibility questions and answers page, and in the preamble to the final employer shared responsibility regulations.

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