Chicago partner Sarah Bassler Millar was quoted in Private Wealth article on the implications of Chief Justice John Roberts’s deciding vote that rendered constitutional the Patient Protection and Affordable Care Act.
Sarah, a partner in the Employee Benefits & Executive Compensation Practice Group, commented on the ramifications of the act for employers.
Starting in 2014, the employer mandate requires that employers with at least 50 full-time equivalent employees will have to make available a minimum level of insurance to employees who average 30 or more hours per week, or pay a penalty of $2,000 per employee, excluding the first 30 workers.
Sarah explained that employers providing coverage that’s deemed unaffordable under the rules are subject to a penalty of $3,000 per year, per employee who obtains federally subsidized coverage on an exchange.
Sarah said that clients with growing businesses need to understand the requirement so they appreciate the implications of adding staff:
“The cost won’t be just wages and employment taxes. It’s going to include health coverage or a penalty for not providing coverage,” she said.