Employer “Play or Pay” mandate

Beginning January 1, 2014, employers with more than 50 employees will have to provide health insurance to Full Time employees (30 hours or more).  This coverage will have to have a yet-to-be-identified “minimum value” and the employee-only coverage must be considered “affordable.”

The determination of affordable is that the employee would not be asked to pay more than 9.5% of his/her W2 wages.  That means that an employee earning $30,000 a year could not pay more than $54.80 a week for coverage.  Almost every employer I have as a client charges more than that;  on a plan where the employer pays 50% of the single coverage, the maximum premium would be $474.  Thats gonna be tough to do.

If your plan fails to meet these requirements, and an employee elects to join the Federal Exchange Programs, you will have to pay a penalty to the government.