Joanne Forbes, MBA, FLMI, Principal, Health & Welfare Consultant
Hill, Chesson & Woody
Businesses with 50 or more full-time equivalent employees have a big decision to make this year regarding healthcare, with major consequences to their bottom lines. They can either “Play” and let all employees participate in the company’s health insurance plans, or “Pay” a penalty to the federal government for declining to offer healthcare coverage to eligible employees.
It is a difficult choice to meet because of the factors involved. If you have a lean plan design and contribution strategies with many employees who work more than 30 hours, deciding to “Play” can be more costly to put into effect. But if you “Pay,” you face non-tax deductible penalties of $2,000 per eligible employee, meaning a fine of at least $40,000, plus potential compensation requests from employees who had been receiving health insurance from your company. And if you have a seasonal workforce, those employees could be affected by Play or Pay as well.
To help make sense of what to consider on this issue, HCW is offering a special two-part webinar at 10 a.m. on Wednesday, April 17 and Friday, April 19 titled “Avoiding the Penalty.” The webinars review the following items:
Avoiding the Penalty, Part 1 of 2: Covering the Right Employees