Effective January 1, 2014, the PPACA assesses employers with more than 50 employees that do not offer coverage and have at least one full-time employee who receives a premium tax credit a fee of $2,000 per full-time employee, excluding the first 30 employees from the assessment. Employers with more than 50 employees that offer coverage but have at least one full-time employee receiving a premium tax credit, will pay the lesser of $3,000 for each employee receiving a premium credit or $2,000 for each full-time employee.
The employee premium tax credit applies to employees with lower incomes (between 133%-400% of federal proverty level).
The law exempts employers with 50 or fewer employees from any penalties.
Joe's Coffee Shop: Joe runs a small one location coffee shop with 12 employees. Joe and his employees are exempt from the penalties imposed on larger businesses and instead receive coverage through the health insurance exchange in their state. Joe receives a tax credit in years 2010-2013 of up to 35% of the employer's contribution toward the health insurance premiums. Joe is not eligible for the full credit because he has more than 10 employees. his credit will be less than 35%.
Mary's Greenhouse: 2 locations, 56 employees. Mary has 2 employees receiving a tax credit. Mary pays a penalty of $6,000 ($3,000 for each).
