Insurnacegirl555 Posted April 6, 2022 Share Posted April 6, 2022 I understand penalty a and b calculations. I also see that b calculation will never be larger than a according to IRS guidance. If business has 59 Fte (so they are an ALE) but *only* 28 truly full time employees then they are shielded from both penalties, no? Because when you subtract the “free” 30 off penalty a they would be at $0. So, even if 4 people go and get PTC their penalty A would be $0 and their penalty B wouldn’t kick in because B can’t be bigger than A it says. So, anyone with 30 FT all year (or less) is protected from penalties, yes? Link to comment Share on other sites More sharing options...
Flyboyjohn Posted April 7, 2022 Share Posted April 7, 2022 Yes, you are correct, I often tell employers to pick their 30 best employees and work the heck out of them but limit everybody else to less than 130 hours a month and you’re exempt from ACA ESRP penalties (but of course they still have to file the darn 1095-C forms if they’re an ALE). Link to comment Share on other sites More sharing options...
MRestum Posted April 12, 2022 Share Posted April 12, 2022 I often advise employers to be careful about intentionally limiting an employee’s work hours to prevent the employee from becoming eligible for health plan coverage. That strategy has potential legal risk under ERISA §510. leevena 1 Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now