The Affordable Care Act’s “pay or play” mandate goes into effect starting in 2014.  Under the mandate, large employers (employers with 50 or more full-time employees) must either provide health coverage to their employees or pay an excise tax.  The chart below shows when the “pay or play” penalty applies and how to calculate the penalty.  A printer-friendly version of the chart is available here.  (For information about other requirements under the Affordable Care Act and their associated penalties, see our Health Reform website.)

For more information regarding the employer mandate, please see “IRS Proposes Shared Responsibility Tax Rules for Employers” at InsideCompensation.com.

 

Tags: Affordable Care Act, pay-or-play
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Photo of Robert Newman Robert Newman

Robert Newman is a partner in the firm’s employee benefits and executive compensation practice group.  He represents clients ranging from small employers to some of the nation’s largest employers, including for-profit and tax-exempt entities.  His practice includes:

  • designing, drafting, and amending a wide
…

Robert Newman is a partner in the firm’s employee benefits and executive compensation practice group.  He represents clients ranging from small employers to some of the nation’s largest employers, including for-profit and tax-exempt entities.  His practice includes:

  • designing, drafting, and amending a wide range of retirement plans (including 401(k) plans, ESOPs, and traditional and hybrid defined benefit plans) and welfare plans (including health, severance, and cafeteria plans);
  • creating executive compensation arrangements including nonqualified deferred compensation plans, stock option plans, and other incentive plans;
  • representing clients before the IRS and the Department of Labor;
  • assisting clients with legislative initiatives;
  • providing benefits expertise in corporate transactions and ERISA litigation;
  • counseling clients with respect to pension fund investments in private equity funds and hedge funds; and
  • negotiating and writing employment agreements.

Chambers USA ranks Robert as Band 1 for Employee Benefits & Executive Compensation, citing client interviews describing him as “an excellent lawyer and a great problem solver,” and “extremely knowledgeable, thoughtful and thorough,” while commending his “wealth of experience handling pension derisking transactions as well as a proven ability to handle litigious matters.”

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