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2015 Employer Mandates for the Affordable Care Act

Health care image

Effective January 1, 2015, employers with 100 or more full-time or full-time equivalent employees who do not offer affordable health insurance that provides minimum value to their full-time employees (and dependents) may be required to pay a penalty if at least one of their full-time employees is certified to receive a Premium Tax Credit in the individual Health Insurance Marketplace.

Certain Employers are Subject ACA Provisions

Certain employers are subject to the Employer Shared Responsibility Provisions under the ACA. Under these provisions, such employers may be penalized for:

  • Not providing minimum essential coverage to their full-time employees and dependents
  • Not providing coverage that is affordable and that provides minimum value. On February 10, 2014, the Internal Revenue Services (IRS) and the Department of the Treasury issued a final rule implementing the employer shared responsibility requirements under section 4980H of the Internal Revenue Code.

When Does The Employer Responsibility Provision Take Effect?

Although the requirements were effective beginning January 1, 2014, overall enforcement was delayed to January 1, 2015, with an additional enforcement delay added for employers with 50 to 99 full-time or full-time equivalent employees. For those employers, the requirements will not be enforced until plan years with effective dates on or after January 1, 2016, if certain conditions are met.

Transitional relief is also available for employers with 100 or more full-time or full-time equivalent employees. For these employers who provide coverage that is affordable and meets minimum value to at least 70% of full-time employees in 2015 and at least 95% in 2016 and beyond, the 4980(H) penalties will not be triggered.

Employers who employ fewer than 50 full-time employees and full-time equivalents in the prior calendar year are not subject to the Employer Shared Responsibility provisions in the current calendar year.

Additional ACA Resources

As the ACA continues to change and evolve, it is a challenge for all employers to maintain compliance. To track the latest ACA changes and information, we have provided below a number of resources for you and your staff.

Have a question? Contact us

For more information about ACA reporting other compliance issues, contact Carrie Wiegand via email, or Cindy McSwain using her information below.

Cindy McSwain

Senior Vice President,
Outsourcing Services
Cindy McSwain leads AGH’s outsourcing services group. Her team provides payroll, accounting, funds disbursement, controller, and other financial outsourcing services to numerous clients throughout the U.S. Prior to directing the outsourcing group, Cindy served AGH’s audit clients for 10 years, working with a wide range of middle-market, closely held and family-owned clients.

Her current clients cross many industry sectors, including manufacturing, distribution, restaurants, retailers, medical, and not-for-profit. She has participated in numerous SEC filings and public registrations and has experience in mergers and acquisitions. Cindy is a certified public accountant and a member of both the American Institute of Certified Public Accountants and the Kansas Society of Certified Public Accountants.
Cindy McSwain
Cindy McSwain
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