Welcome to our Healthcare Reform Blog!

The Affordable Care Act (ACA) of 2010 has many implications for individuals and employers, many of which will take effect in 2014. We, at The Rockwood Company, are dedicated to providing you with timely information to help you make benefit choices for 2014 and beyond. We are using this blog to provide you with the most up-to-date information. New information will be posted on the front page, and tagged with the appropriate classification. Classifications will be individuals, small groups (less than 50 employees) and large group (greater than 50 employees).

Wednesday, February 13, 2013

2014 Penalties for Employers over 50 Employees

Penalty for Not Offering Coverage

If a large employer (> than 50 full time employees) does not offer coverage to their full-time employees employers face a penalty of :
  • $2,000 X the total number of full-time employees (FTE) minus 30 - Only if at least one FTE is receiving a premium assistance tax credit

Penalty for Coverage that is Not Affordable

If a large employer has coverage but that coverage does not provide minimum value or it is unaffordable for some employees.  Coverage that is not affordable requires employees to pay more than 9.5% of their earnings toward the cost of the coverage. The penalty is:
  • The lesser of $3,000 X the number of FTEs receiving premium assistance through the exchange or $2,000 X the number of FTEs, employers subtract the first 30 workers in the final calculation.


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