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SharedResponsibilityPayment Phase I
Businesseswith 100 ormore full-time equivalent employees need toprovide affordable,
minimum value health care coverage to 70percent of all full-time employees and their
dependents, unless the employer qualifies for 2015dependent coverage transition relief, or
face a penalty. Formore information about penalties, see
Penalties
$2,000 for each full-timeemployee:
If the employer does not offerminimum
essential health coverage to at least 95percent of full-time (30 hour) employees and
their dependents, and at least one full-time employee obtains a premium subsidy
through theHealth InsuranceMarketplace, the penalty is $2,000per year, per full-time
employee, excluding the first 30 employees.
5
Note: This calculation is also used as a cap for employers offering coverage that is considered unaffordable
or does notmeet theminimum value standards (see $3,000).
$3,000 for each full-timeemployee receivinga subsidy:
If an employer offers
coverage that is considered unaffordable or does notmeetminimum value standards,
the fine is calculated as $3,000 for each full-time (30 hour) employee purchasing
coverage through theHealth InsuranceMarketplace and receiving a premium subsidy,
up to a cap of $2,000multipliedby the number of full-time employees, excluding the
first 30 employees.
5
SharedResponsibilityPayment Phase II
In 2016, the requirement is extended to employerswith 50 ormore full-time equivalent
employees. Additionally, at this time coveragemust be offered to 95percent of full-time
employees and their dependents.
IRS reporting requirements for employers
Your businesswill be required to report information regarding the health coverage of your
employees, includingbasic employee data, dates and type of coverage; cost-sharing; and
any other information requiredby the IRS. These requirements apply to coverage offeredon or
after January 1, 2015, but the first report will not be due until 2016.
3,11
Cadillacplan tax
A taxwill be imposedon insurers and employerswith self-funded health planswith annual
premiums that exceed $10,200 for individuals and $27,500 for families.
11
TheCadillac tax
is 40percent of the excess of the annual value of a health plan’s cost above the threshold
amounts set forth above.
12
ImportantDate5:
January 1, 2018
ImportantDate4:
January 1, 2016
ImportantDate3:
January 1, 2015
