It is important for an employer to understand the risks and liabilities associated with employer mandates in order to meet the regulations and operate in an appropriate manner. The Employer Mandate Penalty includes two types of penalties. These penalties do not apply to an employer unless they have at least one employee that works on a full-time basis and receives subsidies while buying health insurance through the Health Insurance Marketplace or Exchange.
The first type of penalty, referred to as “A,” applies to employers that do not offer minimum essential coverage to its full-time employees, and where one of those employees has purchased health insurance from the Health Insurance Marketplace. The amount of the penalties are assessed and determined from year-to-year; however, the Employer Mandate Penalty Calculator below can help you determine if your company is required to pay such penalties.
The second type of penalty referred to as “B,” applies to employers that offer some coverage to their employees but the coverage is deemed expensive or not affordable. This penalty differs from penalty “A” because it does not include the calculation of all full-time employees. It includes only those employees for whom the coverage is deemed expensive or doesn’t provide the minimum value as outlined in the marketplace and exchange. Penalty “B” will not exceed the amount of penalty “A” if that penalty had been enforced or applied to the employer in question.
Employers should use the calculator below to determine if they are required to pay any Employer Mandate Penalties related to their operation and health insurance coverage. If you have any questions or concerns about the Employer Mandate Penalties or if you are concerned that your company might be in violation of these mandates, contact Cook Martin Poulson, P.C. today. We will keep you apprised of any changes related to the Employer Mandate Penalties Act so check back often for changes to the mandate.
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Disclaimer: The employer mandate of the Affordable Care Act was postponed until Jan. 1, 2015