How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask wallstreetfighter Your Own Question

wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 15592
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
Type Your Employment Law Question Here...
wallstreetfighter is online now
A new question is answered every 9 seconds

Under obamacare, does the employer have to pay for a percentage

Resolved Question:

Under obamacare, does the employer have to pay for a percentage of the employee's health coverage, or just offer it?
Submitted: 2 years ago.
Category: Employment Law
Expert:  wallstreetfighter replied 2 years ago.

wallstreetesq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

wallstreetesq. :

ObamaCare does not impose a straight-forward requirement that employers offer health insurance to workers.

wallstreetesq. :

If a firm with at least 50 workers has a full-time employee who is getting federally-subsided insurance through an ”exchange,” then that employer must pay a penalty for failing to offer that worker acceptable insurance on the job. (Workers that are offered qualified coverage by an employer are ineligible for the new insurance subsidies provided in the exchanges.)


The tax is scheduled to begin in 2014 and the Congressional Budget Office estimates it will bring in approximately $10 billion in annual revenue once it’s fully implemented.

wallstreetesq. :

For firms which do not offer insurance any insurance, have more than 50 employees, and have at least one employee receiving insurance subsidies, they must pay a tax of $2000 per subsidized employee. The individual mandate requires everyone to purchase health insurance. The tax is applied to all of a firm’s employees (after excluding the first 30), not just those that are subsidized. For example a firm with 51 employees would pay $42,000 in new annual taxes, and an additional $2,000 tax for every new hire.


For firms that do offer insurance, the penalty is the lesser of $2,000 for every employee (after exempting the first 30) or $3,000) for every employee receiving a subsidy.

Customer:

We are a staffing company with about 600 employees. What if we offer the insurance. Would we have to pay part of their premium? Most of these employees make less than $600/wk.

wallstreetesq. :

You would have to offer the the insurance,

wallstreetesq. :

and pay some part of the premium, however

wallstreetesq. :

the payments would be deductable,

wallstreetesq. :

and you would receive a tax benefit as well,

Customer:

What part, 1% or 75

wallstreetesq. :

The law is vague but not more than 50%

wallstreetesq. :



  1. Employers that do not “offer or make a meaningful contribution” to provide of help cover the cost of health care benefits for their employees will not get off for free.

    Employers that do not provide or substantially contribute to their employee’s health care, will be required to pay a percentage of their payroll to the government as a contribution to the national plan. This would not be an optional contribution and no guidelines have yet been offered as to what that payroll percentage contribution would be.





wallstreetesq. :

The law states the above,

wallstreetesq. :

Employers with more than ten employees will be required to provide employees with health insurance, and make a "fair and reasonable" contribution to the cost. Employers who satisfy both of these requirements are called "contributing employers." What constitutes a fair and reasonable contribution amount is to be interpreted by the Division of Health Care Finance and Policy. Regulatory guidance will prove critical for employers wondering whether they must contribute 10 percent, 25 percent, 50 percent or some other amount in order to satisfy their obligation. This contribution level has not yet been determined and should be closely monitored.

Employers who do not comply with this provision will pay a "Fair Share Contribution." The amount of the contribution will vary, but it is capped at $295 per employee. The Fair Share Contribution is designed to reimburse the State for the free health care provided to employees whose employers do not offer insurance (M.G.L. ch. 149 § 187).

Another charge assessed to employers is the "Free Rider Surcharge," imposed where the employer has more than 10 employees, fails to provide health insurance, and whose employees, as a result, depend on free health care. This charge does not occur automatically, but only when (1) an employee obtains free health care at a medical facility more than three times in a year, or (2) employees in the aggregate receive free care on at least five occasions in a year.

Customer:

Thank You

wallstreetesq. :

What you will need to do is speak to your accountant at the time the law begins and see if it is cheaper to not provide any coverage, as the employees would be able to get subsidized medical insurance on their own, and pay much less

wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 15592
Experience: 14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
wallstreetfighter and 2 other Employment Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
< Last | Next >
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
  • Excellent direction from Socrateaser to help me preserve and pursue my rights as a proud American who has become unemployed in this messed-up economic downfall. Thank you Happy Customer Denver, CO
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    7759
    JD, BBA, recognized by ABA for excellence.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    7759
    JD, BBA, recognized by ABA for excellence.
  • http://ww2.justanswer.com/uploads/marshadjd/2009-6-1_194320_marshajd.jpg Marsha411JD's Avatar

    Marsha411JD

    Lawyer

    Satisfied Customers:

    10539
    Licensed Attorney with 27 yrs. exp in Employment Law
  • http://ww2.justanswer.com/uploads/NY/nyclawyer/2012-6-7_22011_photo66139201112041.64x64.jpg Infolawyer's Avatar

    Infolawyer

    Lawyer

    Satisfied Customers:

    9785
    Licensed attorney helping employers and employees.
  • http://ww2.justanswer.com/uploads/JA/jaccorpsesq/2011-11-13_21141_JAnewphoto.64x64.jpg Allen M., Esq.'s Avatar

    Allen M., Esq.

    Employment Lawyer

    Satisfied Customers:

    9429
    Employment/Labor Law Litigation
  • http://ww2.justanswer.com/uploads/MI/MILawyer/2011-2-28_0311_JBUprofile.64x64.jpg JB Umphrey's Avatar

    JB Umphrey

    Lawyer

    Satisfied Customers:

    6273
    Assisting employees and employers for over 14 years.
  • http://ww2.justanswer.com/uploads/TU/TUSA/2012-6-6_55219_test.64x64.png Thoreau (T-USA)'s Avatar

    Thoreau (T-USA)

    Lawyer

    Satisfied Customers:

    2469
    Attorney
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    2214
    I provide employment and discrimination law advice in my own practice.