Blog

Are All Employers Subject to the ACA Play-or-Pay Penalty?

No, only applicable large employers are subject to the employer play-or-pay requirement. The ACA defines an applicable large employer as an employer that, during the prior calendar year, employed an average of at least 50 full-time employees. To calculate the number of full-time employees for this purpose, an employer must look at: (1) actual full-time employees; and (2) the number of full-time equivalent employees (FTEs) represented by the employer’s part-time employees. The statute defines a full-time employee as one working 30 or more hours per week, calculated monthly.