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Are You Subject to the Employer Mandate?

Posted By on Nov 17, 2016 | 0 comments


The Employer Mandate, which requires large and mid-sized companies to provide health insurance to employees, was one of the key features of healthcare reform. Since the Employer Mandate, also sometimes called Shared Responsibility, was one of the most widely anticipated and misunderstood parts of the Affordable Care Act. Even now, a few years into the sweeping healthcare reform, many employers are having trouble deciding which parts of the ACA apply to them.

What you need to know: If your organization employs 50 or more full-time workers (defined as working 30 or more hours per week), then the Employer Mandate does apply to you. Larger companies (100 or more full-time employees) were required to comply with the law beginning in 2015. Mid-sized (50 to 99 full-time employees) should have begun complying in 2016. If your company didn’t comply with the healthcare regulations this year, you will face a penalty when you file your taxes in the spring.

Note: Small employers (those with 50 or fewer full-time workers) were not required to provide health insurance, but may reap many important benefits from doing so.

So how do you comply with the Employer Mandate? The law seems complicated, but there are really just three steps.

  • Offer a healthcare plan (that meets Minimum Value requirements as set forward by the ACA) to all full-time employees. You don’t have to offer coverage to part-time or seasonal workers.
  • Ensure that this coverage is affordable for employees, according to formulas provided by the ACA
  • File forms 1094-C and 1095-C with the IRS to show that you have complied with both steps above

It sounds simple when you boil it down to three steps, but each step does require knowledge of healthcare laws and formulas. That’s why we handle these parts for you! Give us a call, and we can answer your questions about healthcare plans, help to ensure that your company is complying with the law, and give you assistance with those complicated tax forms.

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