In general, under the pay or play provisions an applicable large employer (ALE) evaluating affordability and minimum value options may either offer affordable minimum essential coverage that provides minimum value to its full-time employees (and their dependents) or potentially owe a penalty payment to the IRS. For this purpose, a dependent is an employee’s child (including a child who has been legally adopted or placed for adoption) and who has not reached the age of 26. Spouses are not considered dependents and neither are stepchildren or foster children.
Pay or Play Penalties
There are two potential pay or play penalties, based on whether the applicable large employer (ALE) offers health coverage to certain employees:
- ALEs Not Offering Coverage: The ALE does not offer health coverage or offers coverage to fewer than 95% of its full-time employees (and their dependents), and at least one full-time employee receives a premium tax credit; or
- ALEs Offering Coverage That Is Not Affordable Or Does Not Provide Minimum Value: The ALE offers health coverage to at least 95% of its full-time employees (and their dependents), but at least one full-time employee receives a premium tax credit, which may occur because the ALE did not offer coverage to that employee or because the coverage the ALE offered that employee was either unaffordable to the employee or did not provide minimum value.
The Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), has released a new model Employer CHIP Notice with information current as of July 31, 2022.
As a reminder, the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) imposes an annual notice requirement on employers that maintain group health plans in states that provide premium assistance subsidies under a Medicaid plan or a Children’s Health Insurance Plan (CHIP).
On May 1, 2022, the U.S. Department of Homeland Security (DHS) ended the COVID-19 Temporary Policy for List B Identity Documents. As a result, employers are no longer allowed to accept expired List B documents when individuals fill out their Form I-9. In addition, if an employee presented an expired List B document between May 1, 2020, and April 30, 2022, employers are required to update their Form I-9 by July 31, 2022.
For the first time since 2011, the IRS raises mileage rates in a midyear adjustment to calculate the deductible costs of operating an automobile for business and other specific purposes. The agency said the change is in recognition of recent gasoline price increases.
The hiring process is one of the most important and complex tasks facing employers. Not only must employers ensure they have made the best effort to find the most qualified candidate, they must also ensure they’ve complied with both state and federal anti-discrimination laws at each stage of the hiring process. Additionally, the hiring process is a lengthy undertaking that typically involves drafting a job description, recruiting, screening, selecting, hiring and onboarding.
Health savings accounts (HSAs) are a great tool for helping manage your out-of-pocket health care expenses. Follow these five strategies below to make sure you are getting the most out of your HSA account.
In the wake of the U.S. Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization, which allows states to regulate and prohibit abortion, the Department of Health and Human Services (HHS) issued new guidance regarding HIPAA’s privacy protections for reproductive health care. The guidance focuses on health care providers’ obligation under the HIPAA Privacy Rule to safeguard the privacy of patients’ protected health information (PHI) related to reproductive health care, including abortions.
Georgia Workers Compensation Statutes | Employee’s Notice to Employer, Claim Filing Requirements, and more.
Health savings accounts (HSAs) are a popular type of tax-advantaged medical savings account available to individuals enrolled in high deductible health plans (HDHPs). Individuals can use their HSAs to pay for expenses covered under the HDHP until their deductible has been met, or they can use their HSAs to pay for qualified medical expenses that are not covered under the HDHP, such as dental or vision expenses.