7 Things Employers Need to Know About Obamacare | Procedure for Paying Penalties


The sixth thing that I think that most employers need to understand is that you don’t need to go pay the penalty. If you figure out that you’re not going to be able to offer healthcare coverage, and therefore, there’s a good chance you will have to pay one of these penalties, you don’t need to calculate that yourself and send it in to the government. The government is going to certify each employer that they have an employee who has gone out and got a coverage under the exchanges, and therefore qualified for a tax credit. That’s what triggers the employer’s responsibility to pay this penalty. Once that’s been certified, the IRS will be the ones who tell you, “This is how much you owe,” looking at their determination of your full-time equivalence, and full-time employees. They’ll one, determine whether you had to provide the coverage in the first place, and second, that you need to pay the penalty.

One interesting thing is that you don’t actually have to pay the penalty based on the calculation of your full-time equivalence, so while part-time employees are looked at in terms of determining whether you have to offer coverage at all in the first place, your penalty is actually only paid on the number of full-time, actual full-time employees you have.