2015 Pay or Play Calculators & Timeline for Compliance

2015 Pay or Play Calculators & Timeline for Compliance

Certain employers must comply with the Affordable Care Act’s Employer Shared Responsibility provisions (also known as “Pay or Play”) in less than 6 months. HR360’s attorney-reviewed, downloadable Pay or Play Toolkit and Calculators can help prepare those subject to the law.

 

Three Calculators Available

The Large Employer Status Calculator can be used to calculate an employer’s average number of full-time employees (including full-time equivalent employees or FTEs) to determine whether the employer is subject to Pay or Play for a calendar year.

There are two separate Penalty Calculators for 2015 that can be used to calculate the potential amount of a penalty–one for employers with 50 to 99 full-time employees and one for employers with 100 or more full-time employees.

 

Compliance Timeline

  • Employers with 50 to 99 full-time employees (including FTEs) are subject to Pay or Play, but the requirements will not apply until 2016 for employers who certify that they meet certain eligibility criteria related to workforce size, maintenance of workforce and aggregate hours of service, and maintenance of previously offered health coverage.
  • Employers with 100 or more full-time employees (including FTEs) are subject to the requirements for 2015 and must offer coverage to at least 70% of full-time employees (and their dependents, unless transition relief applies) to avoid a penalty for failing to offer health coverage, rather than 95% which will begin in 2016. An employer that offers coverage to at least 70% of full-time employees may nevertheless owe a penalty if any full-time employee receives a premium tax credit.

 

Visit our Pay or Play (Employer Shared Responsibility) section within the HR Library in the Client Resource Center for more information, including an outline of the transition relief available for 2014 and 2015.