LATEST NEWS IRS Releases Final Rules on Health Care Reform Costs
Under the Affordable Care Act, if employer coverage is not affordable, employers are liable for a $3,000 penalty for each full-time employee whose required premium contribution does not meet the affordability test, which deems coverage unaffordable if an employee’s premium contribution for that coverage exceeds 9.5 percent of his or her household income.
Such employees will be eligible to receive a premium subsidy to buy coverage through a government-run health insurance exchange, according to an IRS release.
The IRS states the requirement only applies to self-only coverage.
Max Mihelich is Workforce’s editorial intern.