Employer Shared Responsibility

Find out how much the employer shared responsibility payments could cost you.

Beginning January 1st, 2015 the employer shared responsibility requirements of the Affordable Care Act mandates that most employers with 50 or more full-time employees or full-time equivalents must offer minimum essential coverage to their employees and their dependents that meets a two part test. First, the plan must meet Minimum Value requirements, meaning the benefit plans covers 60% of the average cost of coverage services. Second, the plan must be "affordable". The premium charged for employee-only coverage cannot be more than 9.5 percent of the employee's income (derived from the employer).

Overview of Shared Responsibility Requirements

Beginning January 1st, 2015 the employer shared responsibility requirement of the Affordable Care Act mandates that most employers with 50 or more full-time employees or full-time equivalents must offer minimum essential coverage to their employees and their dependents that meets a two part test. First, the plan must meet Minimum Value requirements, meaning the benefit plans covers 60% of the average cost of coverage services. Second, the plan must be "affordable". The premium charged for employee-only coverage cannot be more than 9.5 percent of the employee's income (derived from the employer).

Overview of Shared Responsibility Requirements

Beginning on January 1, 2015, your large and small group clients will have to comply with the shared responsibility requirements of the Affordable Care Act. Employers with 50 or more full-time employees or full-time equivalents must offer minimum essential coverage to their employees and their dependents that meets a two part test. First, the plan must meet Minimum Value requirements, meaning the benefit plans covers 60% of the average cost of coverage services. Second, the plan must be "affordable". The premium charged for employee-only coverage cannot be more than 9.5 percent of the employee's income (derived from the employer)

However, most small businesses – those with fewer than 50 full-time employees or equivalents – are exempt from this new requirement.

Overview of Shared Responsibility Requirements