The Wagner Law Group
Wagner Law Group, A Professional Corporation, is a nationally
recognized ERISA & employee benefits, estate planning,
employment, labor & human resources practice.
in 1996, The Wagner Law Group has 24 attorneys engaged
exclusively in employee benefits, estate planning and
employment law. Six of our attorneys are AV rated by
Martindale-Hubbell as having very high to preeminent legal abilities
and ethical standards. The firm is among the largest ERISA boutiques
in the country. Our practice is national in scope, with clients in
more than 40 states and several foreign countries.
Wagner Law Group
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
East Kennedy Boulevard
Tampa, FL 33602
Francisco, CA 94104
100 South 4th Street, Suite 550
St. Louis, MO 63102
July 28, 2016
Health and Welfare Law
Employees' Impact on ACA's Employer Mandate Penalty
has explained how employees enrolled in Medicare affect an employers'
liability under the Affordable Care Act's ("ACA's")
employer shared responsibility penalties.
the ACA, employers with 50 or more full-time equivalent employees are
subject to one of two penalties if they fail to comply with the ACA's
employer shared responsibility provisions.
first penalty applies if: (i) an employer fails to offer health care
coverage to "substantially all" of its full-time employees;
and (ii) a low-income, full-time employee receives a premium tax
credit through a Marketplace. In those situations, the employer must
pay an annual penalty of $2,000 (adjusted for inflation) multiplied
by the number of full-time employees in excess of 30.
other penalty applies in situations where: (i) an employer offers
health care coverage to its full-time employees that is either
"unaffordable" or does not provide "minimum
value;" and (ii) a low-income, full-time employee receives a
premium tax credit through an Exchange. In such situations, the
employer must pay an annual penalty of $3,000 (adjusted for
inflation) for each full-time employee who receives the premium tax
credit. However, this penalty is capped at $2,000 multiplied by the
number of full-time employees in excess of 30.
confirmed that for purposes of determining whether an employer is
liable for the first penalty all full-time employees are counted,
regardless of whether they are enrolled in Medicare or another type
the IRS noted that an employer is liable for the second penalty only
for employees who enroll in Marketplace coverage and receive a
premium tax credit subsidy. Because employees who are actually
enrolled in Medicare (rather than merely eligible to enroll in
Medicare) cannot receive the tax credit, they do not affect an
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