The Affordable Care Act (or Obama-care) Employer Mandate goes into effect for all businesses in 2016 that employ 50 or more full-time-equivalent (FTE) workers. For some businesses, this means higher fees. For others, it means that you have a higher number of employees that you have to insure. So let’s take a look at what 2016 has in store for your mandated Health Care coverage for your employees.
- Did any of your employees have to pay more than 9.66% of their household income for the employer coverage (called affordable coverage)?If not, then you don’t owe a penalty, If they did, and at least one employee received a premium tax credit to help pay for coverage, then you owe a penalty. The penalthy for each month is $270, for each FTE receiving a premium tax credit that month (up to a max of $180 multiplied by the number of FTE (minus up to 30))
If you’re still confused, then just drop me a line and I’d be happy to help you figure it out: