Issue link: https://www.e-digitaleditions.com/i/177159
The Employer Mandate continued government subsidy. A full-time employee qualifies for a subsidy if his or her household income is between 100 and 400 percent of the federal poverty level and the employee's share of the self-only portion of the premium exceeds 9.5 percent of their taxable income. Taxable income can be found in Box 1 of an employee's W-2 form. Here are some scenarios: • More than 50 FTE employees and the business does not offer insurance to the full-time employees, with one or more full-time employees receiving premium subsidies because their income falls between 100 percent and 400 percent of the federal poverty level. The penalty is $2,000 per full-time employee (minus 30 full-time employees). • More than 50 FTE employees and the business offers insurance with one or more full-time employees receiving premium subsidies because their share of the self-only portion of the premium exceeds 9.5 percent of their income. The penalty is the lesser of $3,000 per subsidized full-time employee or $2,000 per full-time employee (minus 30 fulltime employees). • More than 50 FTE employees and the business offers insurance, with no full-time employees receiving premium subsidies. There is no penalty on the employer. All nongrandfathered and exchange health plans are required to meet federally mandated levels of coverage. • Fewer than 50 FTE employees: No penalty or requirement to offer insurance. Those who qualify for the small employer tax credit must purchase a plan from the SHOP exchange. If an employer chooses to offer health insurance, it must cover the essential health benefits package. • Small business health insurance tax rises to $11.3 billion. Individual mandate tax penalty increases to $325 or 2 percent of income above the filing threshold, whichever is greater. • Small business (SHOP) health insurance exchanges must provide more employer health insurance offering opportunities including: • Employer choice- allowing employers to choose multiple health insurance plans from which employees may select. • Employee choice- allowing employers to choose a metallic coverage level from which employees may choose any plan from any insurer within the level. 2016 must verify the offer of affordable and • Large employers adequate coverage. • Small business health insurance tax remains $11.3 billion. • Individual mandate tax penalty increases again, to $695 or 2.5 percent of income above the filing threshold, whichever is greater. • Small business (SHOP) health insurance exchanges must open up to businesses with up to 100 employees. continued on page 30 28 FEDA News & Views