ACA Employer Mandate & Workplace Benefits Flashcards

Under the ACA employer mandate, how many full-time equivalent employees must an employer have to be considered an Applicable Large Employer (ALE)?

Answer: 50 or more

An Applicable Large Employer (ALE) under the ACA is defined as an employer with 50 or more full-time equivalent employees in the prior calendar year.

What IRS form must ALEs file annually to report information about health coverage offered to full-time employees?

Answer: Form 1094-C

ALEs must file Form 1094-C (transmittal) along with Form 1095-C for each full-time employee to report health coverage information to the IRS.

Under the ACA, what is the minimum value standard that employer-sponsored health plans must meet?

Answer: The plan must cover at least 60% of the total allowed costs

ACA minimum value requires that an employer-sponsored plan pay at least 60% of total allowed costs for a standard population.

What is the ACA affordability threshold for employer-sponsored coverage based on in 2024?

Answer: Coverage must cost no more than 8.39% of the employee's household income

For 2024, employer-sponsored self-only coverage is considered affordable if the employee's required contribution does not exceed 8.39% of household income.

Which penalty under ACA Section 4980H(a) applies when an ALE fails to offer minimum essential coverage to at least 95% of its full-time employees?

Answer: The 'A' penalty triggered if at least one full-time employee receives a premium tax credit

The 4980H(a) 'A' penalty is triggered when an ALE fails the 95% offer requirement and at least one full-time employee receives a premium tax credit on the Marketplace.

For ACA purposes, a full-time employee is defined as one who works an average of how many hours per month?

Answer: 130 hours per month

The ACA defines a full-time employee as one who works on average at least 130 hours of service per calendar month.