Medium-sized Applicable Large Employers (ALEs) now have until 2016 to comply with the pay or play rules. The pay or play rules outline penalties that can be imposed on businesses that choose not to offer minimum essential coverages to full-time employees and their dependents that are affordable.
If you’re a business owner and you believe you may qualify for this delay, you must show the following:
You employ at least 50 full-time employees, but fewer than 100 during 2014
Between February 9, 2014 & December 31, 2014 you may not reduce the size of workforce or hours
During coverage maintenance period, you may not eliminate or reduce health coverages
If you changed your plan year after February 9, 2014 to begin on a later calendar date, you are not eligible for the delay.
ALEs have until 2014 until penalties are issued for not offering coverage to at least 95% of Full-time employees; however, to avoid a payment they will need to offer coverage to 70%. By 2016, 95% of Full-time employees need to be offered coverage.
As always, United Insurance Service is here to help, contact us if you need help understanding how these rules apply to your business.
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