U.S. Supreme Court Upholds Affordable Care Act Premium Tax Credits

On June 25, 2015, the United States Supreme Court rendered a decision in the King v. Burwell case, stating that premium tax credits are allowed for eligible individuals who sign up for health insurance coverage through federal as well as state health insurance marketplaces. With the ruling, Employer Shared Responsibility (ESR) provisions within the Affordable Care Act (ACA) remain unchanged.

How Does This Affect You?

Business owners should continue to monitor the law and understand their responsibilities. If you’re what the ESR provisions define as an “Applicable Large Employer,” you:

must track and report to the IRS on Forms 1094-C and 1095-C beginning with this tax year:

  • full-time employee status,*
  • offers of health coverage, and
  • the affordability and adequacy of coverage offered to full-time employees.

may be subject to penalties for failing to file these forms on time.

may be subject to penalties for not offering your full-time employees and their dependents affordable and adequate health insurance.

How Paychex Can Help

Understanding the Employer Shared Responsibility provisions of the ACA and keeping up with the regulations can be a daunting task. Paychex can help you navigate the complexities of the health insurance system and adapt to changes in the health care reform law.

Ask us about Paychex Employer Shared Responsibility Services where we’ll work with you to determine if you’re an Applicable Large Employer and help you track, gather, and report information to the IRS. You can also call us at 844-802-2248 for more information.

*The Employer Shared Responsibility provisions of the ACA define a full-time employee as one who works 30 or more hours a week on average. This is different from what many consider the traditional definition of 40 or more hours a week.