Businesses differ based on type, employees and their access to alternative healthcare sources, primary location of employees and a multitude of factors. These differences lead to questions of how these differences affect whether or not they are subject to Employer Shared Responsibility (ESR). To clear up some of the confusion we address different business types and whether they are subject to ESR.
- Large For Profit Employers?
Yes. All Applicable Large Businesses are subject to Employer Shared Responsibility provisions including for-profit, non-profit and government entity employers.
- Government Entities?
Yes. Government entities are not excluded from the provisions if they exceed the employee threshold (100 Full Time Employees (FTE) in 2015 and 50 FTE in 2016 and thereafter) regardless of whether they are a federal, state or local government employer.
- Employers in States With Federally Run Exchanges?
Yes. It doesn’t matter whether the employer is in a state with a state based or federally based exchange.
- Employers With Employees Eligible For Health Insurance Through Another Source?
Yes. All employees are counted towards establishing the number of FTE in regards to ESR. Employees who are eligible for medicare or medicaid are not eligible for a subsidy in a federal or state based exchange. Plus if no employee receives a tax credit or subsidy the employer is not subject to ESR payment.
- Employers Not Subject to the Employer Shared Responsibility Provisions?
No. Companies with less than 100 FTE in 2015 and 50 FTE in 2016 and thereafter are not subject to ESR.
- Employers Employing US Citizens Abroad?
Maybe. A company that employs US workers abroad are only subject to ESR if they exceed the FTE threshold based on work performed within the US. Workers performing work outside the US are not used in determining if the company is subject to ESR provisions.
Knowing whether or not you are subject to the Employer Shared Responsibility has important legal and financial implications to your business. If after reading the above information you still have questions, contact us at 310-414-9524, via email at firstname.lastname@example.org, or by completing our Fast Form below.