Affordable Care Act

Question 1

What does the affordable care act do?

Answer 1

imposes major new legal obligations on employers, including new excise taxes, which will increase the cost of supplying temporary and contract workers

Question 2

employers that offer “minimum essential coverage” to at least 95% of their full-time employees - and their dependent children under 26yo - will not be subject to penalties unless the plan is “unaffordable” to the employee or does not provide “minimum value – this is called the…?

Answer 2

play option

Question 3

employers that do not offer minimum essential coverage will be assessed a monthly penalty — this is called the…?

Answer 3

pay option

Question 4

what makes an employer’s plan considered affordable?

Answer 4

if the employees share of the premium for a single-only plan does not exceed 9.69% of their wages.

Question 5

are staffing firms subject to tax on all temporary employees?

Answer 5

no, only with respect to their full-time employees

Question 6

how far back is the “look-back” measurement period employers can use to determine an employee’s full-time status for purposes of benefits eligibility?

Answer 6

12 consecutive months