Source: https://tax.thomsonreuters.com/checkpoint-ebia-newsletter/irs-releases-information-letters-on-employer-shared-responsibility-and-repayment-of-exchange-subsidies/
Timestamp: 2017-11-23 20:22:39
Document Index: 369605207

Matched Legal Cases: ['§ 4980', '§ 4980', '§ 4980', '§ 4980', '§ 4980', '§ 4980', '§ 4980']

IRS Releases Information Letters on Employer Shared Responsibility and Repayment of Exchange Subsidies - Thomson Reuters Tax & Accounting
IRS Releases Information Letters on Employer Shared Responsibility and Repayment of Exchange Subsidies
Limiting Number of Full Time Employees for Purposes of Code § 4980H. Information Letter 2016-0030 describes an employer’s policy that restricts part-time and seasonal employees from working more than 29 hours in any week. An employee included in this policy and enrolled in Medicare inquired whether the employer could face potential liability under Code § 4980H if employees worked more than 29 hours in a week. (An employee is considered full-time for purposes of Code § 4980H if the employee averages at least 30 hours per week during a given month.) The letter explains that if the employer is an “applicable large employer” (i.e., it employed an average of 50 or more full-time employees in the preceding calendar year), its failure to offer minimum essential coverage to enough full-time employees (and dependents) for any month could trigger (or increase the amount of) employer penalties under Code § 4980H(a) for that month if even one full-time employee enrolled in subsidized Exchange coverage. All full-time employees are counted for purposes of the Code § 4980H(a) penalty regardless of whether they are enrolled in Medicare or another source of coverage. In contrast, for purposes of the Code § 4980H(b) liability (which generally results from an offer of coverage that does not meet minimum value or affordability standards), a penalty is triggered only for full-time employees who actually enroll in subsidized Exchange coverage. Full-time employees who are eligible for Medicare are ineligible for subsidized Exchange coverage (i.e., they may not receive premium tax credits) and cannot trigger the Code § 4980H(b) penalty.