SHARE

August 22, 2022

IRS Adjusts Figure Applicable to ACA Employer Mandate

You've Reached Your
Free Article Limit This Month
Register for free to get unlimited access to all Law.com OnPractice content.
Register Now

The Employer Shared Responsibility Provisions (commonly known as the "employer mandate") under the Affordable Care Act (ACA) require covered large employers to pay an assessment under the Internal Revenue Code if they fail to offer health coverage to their full-time employees that meets certain standards. Those standards include a requirement that the coverage be affordable for full-time employees. "Affordability" is determined as a percentage of earnings. The IRS recently announced a significant decrease in the percentage for 2023.

The employer mandate applies only to employers with at least 50 full-time employees (or part-time employees, where a part-time employee counts as a fraction of a full-time employee based on hours worked). Covered employers may be gearing up for annual enrollment and determining how much to charge employees for health coverage in 2023, and may wish to take the new affordability percentage into account - particularly if low-wage workers make up a significant portion of the workforce.

ALM expressly disclaims any express or implied warranty regarding the OnPractice Content, including any implied warranty that the OnPractice Content is accurate, has been corrected or is otherwise free from errors.

More From Ballard Spahr

New York Restricts Automated Decision Making in Employment

By Timothy Dickens Ballard Spahr August 29 , 2022

Businesses operating in New York City should be aware of a local law addressing the use of automated employment screening and decision-making tools coming into effect on January 1, 2023.

Status Update: Federal Contractor Vaccine Mandate Injunction Narrowed

By Lila A. Sevener Ballard Spahr August 29 , 2022

On August 26, 2022, the United States Court of Appeals for the Eleventh Circuit narrowed the nationwide injunction of Executive Order 14042, which requires federal contractors and employees who work on or in connection with a covered federal contract, or share a workplace with another employee who works on or in connection with such contracts, to be fully vaccinated against COVID-19.

Unions Cannot Force OSHA to Issue Permanent COVID Standard

By Shannon D. Farmer Ballard Spahr August 26 , 2022

On August 26, 2022, the U.S. Court of Appeals for the District of Columbia Circuit turned back efforts by a group of unions seeking to force the Occupational Safety and Health Administration (OSHA) to quickly issue a permanent rule establishing protections for healthcare workers from COVID-19.

More From Employment Law

U.S. Supreme Court Refuses Review of Case Involving Technical Issue With Plaintiff's EEOC Charge

By Stephanie L. Adler-Paindiris Jackson Lewis P.C. November 16 , 2022

Refusing to weigh in on the impact of a plaintiff’s failure to verify her discrimination charge filed with the Equal Employment Opportunity Commission (EEOC), the U.S. Supreme Court lets stand the lower court’s conclusion that the plaintiff’s failure to verify her charge barred her from filing a lawsuit.

Ninth Circuit Refuses to Boot FLSA Claims: Time Spent Logging On is Compensable

By Christian Antkowiak Buchanan Ingersoll & Rooney November 10 , 2022

Is an employer obligated to pay employees for the time spent booting up and signing into their computers prior to clocking in?

Top Five Labor Law Developments for October 2022

By Jonathan J. Spitz Jackson Lewis P.C. November 08 , 2022

The National Labor Relations Board modified its test for determining if COVID-19-related conditions warrant mail ballot union elections, potentially signaling a return to mostly in-person votes.

Featured Stories
Closeclose
Search
Menu

Working...