With 2015 approaching, the Affordable Care Act (ACA) and its employers shared responsibility provision is an important issue on the minds of many entrepreneurs. Due to delays in determining, many small business owners feel confused about how the requirement will affect their business. In 2015, it is the transition relief provided to some employers. Here is an overview of the transition relief for employers.
The context of the shared responsibilities as an employer providing
The employer shared responsibility provision, also called ESR or the employer mandate, which is a prerequisite for applicable large employers either provide health insurance for employees pay, or a fee when an employee buys through the marketplace subsidized health insurance.
employers with more than 50 full-time positions subject to the ESR. 2015 is a "phase-in" year for the employer mandate as transition relief is available for some employers with 50 to 99 full-time employees .
Transition relief for the employer shared responsibility
No employer shall provide in 2015 shared responsibility payment pursuant to § 480H (a) or (b) during 2015 for employers who meet the following three conditions :
1. Limited staff size
the employer has between 50 and 99 full-time employees on business days during 2014, the number of FTE employees in accordance with the usual rules in force in the final regulations intended status as a for determining applicable large employer.
2. Maintenance of working and aggregates hours Service
The employer, the size of the workforce or the total not reduce hour service for their employees in the period of February 9, 2014-31 of December., 2014 in order for the transition relief .
to qualify ** An employer workforce size or total hour service for bona fide commercial reasons reduced is still that. Transition Assistance
3. Maintenance of earlier health services
can not or substantially reduce health insurance, as is on 9 February eliminate employer, 2014 in the time of 9 February 2014 to 31 December 2015
** For employers with non-calendar year plans, this until the last day of the 2015 plan year.
An employer is not to eliminate or substantially reduce such insurance to be treated if the employer each eligible employee an employer contribution to the cost of the employee only coverage to offer further. The cover must either:
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95 percent of the dollar amount of the contribution to such coverage, which offered the employees on February 9, 2014
OR
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at least the same percentage of the cost of coverage that the employer must cover offered on February 9, 2014 to contribute
in addition, employers are not treated as eliminate or substantially reduce coverage in case of change of the benefits under the employee only coverage offered IF: minimum
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new cover provides value after the change
and
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which in benefits will not change the conditions of his group to change health plans to narrow or the class to reduce or classes of employees (or members was offered by staff) for reporting on February 9, 2014
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