The the Affordable Care Act (ACA) employer shared responsibility provision requires applicable large employers either "affordable" in reporting to the employee from 2014 provide or pay a penalty. What makes coverage affordable for the employee? For 2015, the definition of affordability at 9.56 percent is determined.
What is the employer shared responsibility?
The employer shared responsibility provision, which is also known as ESR or the employer mandate the requirement for greater employer health insurance either offered to the staff, or pay a fee if / when an employee a premium tax credit for health insurance the market gets.
2015 "phase-in" year for the employer shared responsibility. In 2015, there are transition relief for some employers with 50-99 full-time equivalent (FTE) employees. In 2015, if not provide an applicable large employer "minimum essential" and affordable coverage to 70 percent of their full-time employees (and their dependents), the employer would be subject to the employer shared responsibility. The employer would have to pay the fee if a health plan through the marketplace buys one of its employees receives a premium tax credit.
How does an employer whether the coverage it provides is affordable?
in 2015, a cover of the employer is considered affordable, if a proportion of the staff of the premium for the employer-sponsored health insurance is not cost employees more than 9.56 per cent of their household income. As the employer of their household income workers are not generally aware that employers can also one of the three affordability safe havens take. (To safe havens below. More)
If an employer qualifies for the safe haven, their range of coverage will be considered affordable for the purposes of the ESR, regardless of whether it affordable for employees for credit purposes premium tax
What affordability safe havens are
, the three affordability safe havens are.? 1) Form W-2 wages safe harbor, 2) the level of pay safe haven, and 3) the federal poverty line safe haven.
1. The Form W-2 wages safe harbor, the affordability of coverage offered calculate exclusively on wages by the employer to the employee paid. In other words, the safe haven is paid on the amount of wages to employees are based in the rule. In Box 1 of the employee's Form W-2
2 are reported. The amount of pay safe harbor is based on the employee's wage rate at the beginning of the measurement period for an hourly employee. For hourly employees, an employer uses an assumed speed of 130 hours per calendar month, with an hourly employee wage rate multiplied by this safe haven.
3. The federal poverty level (FPL) safe harbor treated generally the coverage as affordable if the employee contribution for a single person for the calendar year in question does not exceed 9.5 percent of the FPL.
for more information on the Health Watch here cover affordability.
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