HAP

Employer Shared Responsibility


What are the government regulations on requiring health insurance to employees?

The IRS and U.S. Treasury Department has issued final regulations on the Employer Shared Responsibility (You are leaving choosehap.org) provisions under section 4980H of the Internal Revenue Code.

The regulations address the following issues:

  • Complying with the employer shared responsibility provisions
  • Ensuring that volunteers do not count as full-time employees
  • Phasing in provisions for businesses with 50 or less eligible employees and those that offer coverage to most, but not yet all, full-time employees

  • According to the Treasury report, here’s how the policy affects employers:

  • Businesses with 50 or less eligible employees
  • Businesses with under 51 eligible employees that do not yet provide quality, affordable health insurance to their full-time workers will report on their workers and coverage in 2015, but have until January 1, 2016 before any employer responsibility payments could apply.

  • 51 or more eligible employees
  • The overwhelming majority of these companies already offer quality coverage. Federal regulations require businesses offer coverage to 95 percent of eligible full time employees starting January 1, 2016. Businesses in this category that do not meet these standards must make an ESRP for 2016. This payment is up to $3,000 per full-time employee (excluding the first 30 employees).

    The IRS Q & A page (You are leaving choosehap.org) can help you determine whether your business is subject to the Employer Shared Responsibility regulations.

     
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