RE: Obamacare part 2
October 4, 2013 at 2:43 am
(This post was last modified: October 4, 2013 at 3:16 am by Raeven.)
I stand corrected on the 50 employees. The rules are complex and I should have double-checked before I stated 100. Here, however, is a summary of the applicable rule:
Beginning in 2014, large employers (e.g., employers that employed on average at least 50 full-time employees on business days during the preceding calendar year) may be subject to one of two "shared responsibility" penalties:
An employer that fails to offer minimum essential coverage (MEC) to its full-time employees and their dependents may be subject to a nondeductible "play or pay" penalty if any full-time employee enrolls in
Exchange coverage and receives a premium tax credit or cost-sharing reduction. The maximum annual “play or pay” penalty is $2,000 for each full-time employee of the employer, disregarding the first 30 full time
employees.
Employers that offer MEC to their full-time employees and their dependents may be subject to a nondeductible "play and pay” penalty of $3,000 for each full-time employee who enrolls in Exchange coverage and receives a premium tax credit or cost-sharing reduction because the employer overage fails to provide minimum value or is unaffordable.
And why so nasty? Will you admit you, too, were incorrect that employers won't pay the penalty, AND that the correct amount is $2,000?
ETA: Whether the threshold is 50 or 100 employees to qualify is something that is determined by either the Federal Exchange or the individual State Exchanges, so I wasn't wrong. In some cases, a small employer is defined as 50 or more full time workers, and in others, it is defined as 100 or more full time workers. So I can understand why you are confused, but maybe it's YOU who needs to go back and re-read the new rules.
Lumpy, of COURSE they're saying that. YOU make it sound like it's simply beyond the realm of consideration that a company might intentionally misrepresent the reasons for laying off full time workers because it sounds better than saying the truth, that they've been doing it all along over the past decade? Statistics do bear that out.
Here's a graph that depicts the trend since 2000:
Still going to say it's Obamacare that drove the changeover from full-time to part-time work?
Beginning in 2014, large employers (e.g., employers that employed on average at least 50 full-time employees on business days during the preceding calendar year) may be subject to one of two "shared responsibility" penalties:
An employer that fails to offer minimum essential coverage (MEC) to its full-time employees and their dependents may be subject to a nondeductible "play or pay" penalty if any full-time employee enrolls in
Exchange coverage and receives a premium tax credit or cost-sharing reduction. The maximum annual “play or pay” penalty is $2,000 for each full-time employee of the employer, disregarding the first 30 full time
employees.
Employers that offer MEC to their full-time employees and their dependents may be subject to a nondeductible "play and pay” penalty of $3,000 for each full-time employee who enrolls in Exchange coverage and receives a premium tax credit or cost-sharing reduction because the employer overage fails to provide minimum value or is unaffordable.
And why so nasty? Will you admit you, too, were incorrect that employers won't pay the penalty, AND that the correct amount is $2,000?
ETA: Whether the threshold is 50 or 100 employees to qualify is something that is determined by either the Federal Exchange or the individual State Exchanges, so I wasn't wrong. In some cases, a small employer is defined as 50 or more full time workers, and in others, it is defined as 100 or more full time workers. So I can understand why you are confused, but maybe it's YOU who needs to go back and re-read the new rules.
Lumpy, of COURSE they're saying that. YOU make it sound like it's simply beyond the realm of consideration that a company might intentionally misrepresent the reasons for laying off full time workers because it sounds better than saying the truth, that they've been doing it all along over the past decade? Statistics do bear that out.
Here's a graph that depicts the trend since 2000:
Still going to say it's Obamacare that drove the changeover from full-time to part-time work?