§ 4980H. Shared responsibility for employers regarding health coverage
(a)
Large employers not offering health coverage
If—
(1)
any applicable large employer fails to offer to its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan (as defined in section
5000A
(f)(2)) for any month, and
(2)
at least one full-time employee of the applicable large employer has been certified to the employer under section 1411 of the Patient Protection and Affordable Care Act as having enrolled for such month in a qualified health plan with respect to which an applicable premium tax credit or cost-sharing reduction is allowed or paid with respect to the employee,
then there is hereby imposed on the employer an assessable payment equal to the product of the applicable payment amount and the number of individuals employed by the employer as full-time employees during such month.
(b)
Large employers offering coverage with employees who qualify for premium tax credits or cost-sharing reductions
(1)
In general
If—
(A)
an applicable large employer offers to its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan (as defined in section
5000A
(f)(2)) for any month, and
(B)
1 or more full-time employees of the applicable large employer has been certified to the employer under section 1411 of the Patient Protection and Affordable Care Act as having enrolled for such month in a qualified health plan with respect to which an applicable premium tax credit or cost-sharing reduction is allowed or paid with respect to the employee,
then there is hereby imposed on the employer an assessable payment equal to the product of the number of full-time employees of the applicable large employer described in subparagraph (B) for such month and an amount equal to 1/12 of $3,000.
(2)
Overall limitation
The aggregate amount of tax determined under paragraph (1) with respect to all employees of an applicable large employer for any month shall not exceed the product of the applicable payment amount and the number of individuals employed by the employer as full-time employees during such month.
(3)
Special rules for employers providing free choice vouchers
No assessable payment shall be imposed under paragraph (1) for any month with respect to any employee to whom the employer provides a free choice voucher under section 10108 of the Patient Protection and Affordable Care Act for such month.
(c)
Definitions and special rules
For purposes of this section—
(1)
Applicable payment amount
The term “applicable payment amount” means, with respect to any month, 1/12 of $2,000.
(2)
Applicable large employer
(A)
In general
The term “applicable large employer” means, with respect to a calendar year, an employer who employed an average of at least 50 full-time employees on business days during the preceding calendar year.
(B)
Exemption for certain employers
(i)
In general
An employer shall not be considered to employ more than 50 full-time employees if—
(ii)
Definition of seasonal workers
The term “seasonal worker” means a worker who performs labor or services on a seasonal basis as defined by the Secretary of Labor, including workers covered by section
500.20(s)(1) of title
29, Code of Federal Regulations and retail workers employed exclusively during holiday seasons.
(C)
Rules for determining employer size
For purposes of this paragraph—
(i)
Application of aggregation rule for employers
All persons treated as a single employer under subsection (b), (c), (m), or (o) of section
414 of the Internal Revenue Code of 1986 shall be treated as 1 employer.
(ii)
Employers not in existence in preceding year
In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is an applicable large employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year.
(D)
Application of employer size to assessable penalties
(i)
In general
The number of individuals employed by an applicable large employer as full-time employees during any month shall be reduced by 30 solely for purposes of calculating—
(ii)
Aggregation
In the case of persons treated as 1 employer under subparagraph (C)(i), only 1 reduction under subclause (I) or (II) [1] shall be allowed with respect to such persons and such reduction shall be allocated among such persons ratably on the basis of the number of full-time employees employed by each such person.
(E)
Full-time equivalents treated as full-time employees
Solely for purposes of determining whether an employer is an applicable large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120.
(3)
Applicable premium tax credit and cost-sharing reduction
The term “applicable premium tax credit and cost-sharing reduction” means—
(4)
Full-time employee
(A)
In general
The term “full-time employee” means, with respect to any month, an employee who is employed on average at least 30 hours of service per week.
(B)
Hours of service
The Secretary, in consultation with the Secretary of Labor, shall prescribe such regulations, rules, and guidance as may be necessary to determine the hours of service of an employee, including rules for the application of this paragraph to employees who are not compensated on an hourly basis.
(5)
Inflation adjustment
(d)
Administration and procedure
(1)
In general
Any assessable payment provided by this section shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as an assessable penalty under subchapter B of chapter 68.
(2)
Time for payment
The Secretary may provide for the payment of any assessable payment provided by this section on an annual, monthly, or other periodic basis as the Secretary may prescribe.
(3)
Coordination with credits, etc.
The Secretary shall prescribe rules, regulations, or guidance for the repayment of any assessable payment (including interest) if such payment is based on the allowance or payment of an applicable premium tax credit or cost-sharing reduction with respect to an employee, such allowance or payment is subsequently disallowed, and the assessable payment would not have been required to be made but for such allowance or payment.
[1] So in original. Probably means subclause (I) or (II) of clause (i).