5
related
Changes for Your
Health Care in 2016
by Barbara Weltman
W
ith the New Year comes the need to make plans
for your health coverage for the coming year.
There’s already buzz about double-digit increases
in premiums in certain locations, but this isn’t the only change
coming. There are also changes in tax rules for health care in
2016.
Here’s what you need to know so you can start to plan
now:
1
2015 Issue 4 |
THE
SCORE
18
Smaller “Large” Employers Subject to the
Mandate
The employer mandate, which was supposed
to start in 2014, was postponed for large employers
(those with 100 or more employees) to 2015. However, starting
in 2016, employers with 50 to 99 employees must start to offer
coverage or pay a penalty. The mandate applies to those with
full-time employees and full-time equivalent (FTE) employees
totaling 50 or more.
To determine whether you’re subject to the employer
mandate, average the number of your employees across the
months in the year (e.g., the number of workers in 2015
determines whether the mandate applies to you in 2016.) Find
details about how to figure these numbers from the IRS.
Note: An employer that was not in existence on any business
day in the prior calendar year is considered a large employer in the
current year only if both of the following conditions apply:
• The employer is reasonably expected to employ an average
of at least 50 full-time employees (including FTEs) on business
days during the current calendar year, and;
• The employer actually employs an average of at least 50 fulltime employees (including full-time equivalents) on business
days during the calendar year.
You can’t duck the employer mandate by splitting business
activities into separate companies so the numbers on the separate
payrolls fall below the mandate level. Companies that have a
common owner or are otherwise related generally are combined
and treated as a single employer, and so would be combined for
purposes of determining whether or not they collectively employ
the requisite number for the employer mandate.
2
Employer Contributions Needed to Avoid
Penaltie