What are the penalties for not complying with the Pay or Play Mandate?

Employers who do not comply with the Pay or Play Mandate risk an annual a fine of $2,000 per full-time employee minus the first 30.

If your company offers health insurance which does not cover the Essential Health Benefits as mandated by ACA and/or does not pay at least 60% of covered health care expenses, your employees will have the option to shop the Exchange and receive a tax credit.

However, your company will be penalized $3,000 for every employee who receives a tax credit. The maximum penalty for an employer is the equivalent of $2,000 per employee minus the first 30 employees. This maximum penalty would be the same as if you did not provide coverage at all as an employer.

If you provide health insurance that covers Essential Health Benefits and pays for at least 60% of covered health care expenses, but you have employees who would have to pay more than 9.5% of their family income for employee only coverage, those employees also have the option to shop the Exchange and may be eligible for a tax credit / Subsidy.

Contact ABM 360 Solutions to design a complete benefits package 1-281-448-3040.