Does Your Company Know About The Affordable Care Act’s Employer Shared Responsibility Payment?

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions. Applicable large employers (ALEs) particularly need to pay attention. ALEs are subject to the employer shared responsibility provisions. A goal of Pontrelli, Timour & Associates is to provide our clients and potential clients with the best information available about the employer shared responsibility provisions and all the requirements of the Affordable Care Act. After all, information is the power to chart the right course.

The Affordable Care Act’s Employer Shared Responsibility Payment

employer shared responsibility payment

Employer Shared Responsibility Payment

Whether an employer is an applicable larger employer in a particular calendar year depends on the size of the employer’s workforce in the preceding calendar year. This is a key distinction to remember. To be defined as an ALE for a particular calendar year, an employer must have had an average of at least 50 full-time employees (including full-time-equivalent employees) during the preceding calendar year. All types of employers can be ALEs, including tax-exempt organizations and government entities.

To prepare for 2016, if your organization is an applicable large employer, you need to keep track information each month in 2015, including the following:

  • Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable
  • Whether your employees enrolled in the minimum essential coverage you offered

PT Benefits can help our clients keep track of this information by providing supporting guidance and information.

Your company needs to track this information because you could be subject to an employer shared responsibility payment if your organization falls into either of these circumstances:

  • You offered coverage to fewer than 70 percent of your full-time employees in 2015 while at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit. The 70 percent threshold is for 2015, after 2015 this increases to 95 percent.
  • You offered coverage to at least 70 percent of your full-time employees and their dependents in 2015, but at least one full-time employee receives a premium tax credit because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage. After 2015, this threshold increases to 95 percent.

 Pontrelli, Timour & Associates Can Help

Pontrelli, Timour & Associates understands if these requirements and logistics seem complicated. We can help you understand your company’s designation and take the steps to remain in compliance with the Affordable Care Act. Naturally, our goal is to help your company avoid an employer shared responsibility payment. To learn more and access the help you need, please call the group insurance experts at PT Benefits at 626-795-4138.Employer Shared Responsibility Payment

Raphy Timour

About 

Co-Founder at Pontrelli, Timour & Associates, Inc.

A California native of Pasadena, Raphy Timour began his career at Automatic Data Processing as an outside sales representative, achieving President Club status each and every year at ADP. Wanting to provide clients with a more customercentric approach, Raphy Timour started Pontrelli, Timour & Associates, Inc. in 2003 with his childhood friend Chris Pontrelli. Raphy Timour has a Health & Insurance License from the California Department of Insurance.

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