BlogsWhat is the Employer Mandate?
August 12, 2015, by Matt Hanson
Employer Mandate. It seems like it’s all we’ve been talking about at Centennial… but there’s a reason why. The impact on your business can be immense. This past June, the Supreme Court upheld the Affordable Care Act. Do you understand what this means for you and your business?
Among these new regulations is the Employer Shared Responsibility. Also known as the Employer Mandate, if your business has more than 50 full-time employees, your company should be offering health benefits to at least 95% of them and their dependents. This started January 1, 2015, so if you aren’t already complying, you need to change now or your business could be subject to a fine if $2,000 per full-time employee per month.
The question then becomes: What constitutes full-time? The employer definition and the law’s definition may differ slightly. While at one time it was the employee that worked a 40-hour work week, now any employee that consistently works either 30 hours per week or 130 hours per month is considered full-time. In order to determine if an employee is meeting these hours, employers are to take a measurement period of between three and 12 months.
Not only do employees need to be covered, but also offered to their listed dependents. Who qualifies as a dependent? Dependents are those that are dependent on your employee, spouses not included. Any children under the age of 26 can be considered a dependent.
As it stands, 96 percent of employers are small businesses with less than 50 full-time employees. Of that small four percent that is affected, most already offer the proper insurance. If you find that you’re one of the few that hasn’t, contact Centennial today for more options about employee benefits. We’ll be happy to help you set up great plans for your employees.
For more information, download our latest white paper, Employer Shared Responsibility.