2022 Affordable Care Act

Penalties and how to get in compliance easily.

Let's keep is simple.

The Affordable Care Act is complicated and has many moving parts. To determine if your company is subject to the Affordable Care Act, you must ask the following questions. 

  • Do you have more than 50 full time employees? (At least 30 hours of service per week during the calendar month, or at least 130 hours of service during the calendar month);

  • Have you had more than 50 full-time employees during the prior year? (add the total number of full-time employees for the year and divide by 12);

  • Do you have more than 50 employees (full and part-time)? If so, you will need to calculate the FTE (full-time equivalent).

If you are unsure, call (972) 466-2915.

To calculate the number of full-time equivalent employees, 

  1. Combine the number of hours of service of all non-full-time employees for the month but do not include more than 120 hours of service per employee, and

  2. Divide the total by 120.

Close

What you need to know.

If you have answered yes to any of the questions above, your company is an Applicable Large Employer (ALE), and your company is subject to the Affordable Care Act.

To avoid the ACA penalties for 2022, your company must offer health insurance. 

Penalty A - 4980H(a)

$2,750 per employee, or $229.17 a month for the 2022 tax year. 

To avoid the 4980(a) penalty, your company must offer your employees a Minimum Essential Coverage Plan (MEC).

MEC plans only cover routine health services such as wellness benefits, preventive care, and specific routine medical care.

Penalty B - 4980H(b)

$4,120 per employee or $343.33 a month for the 2022 tax year. 

To avoid the 4980(b) penalty, your company must offer your employees a Minimum Value Plan (MVP).

Minimum Value Plans must,  at a minimum cover 60% of the total cost of medical services for a standard population and offer substantial coverage of hospital and doctor services

These plans must meet the affordability standard. The IRS has lowered the affordability threshold to 9.61% for 2022.

How to fix it. Affordably, quickly and easily.

How to fix it.

Penalty A - 4980H(a)

Offer a MEC Plan.

We have selected a very popular and affordable plan to offer your employees. The insurance company is Options Plus.

Requirements

  • Minimum of 5 enrolled employees

  • No employer contributions required

  • No medical questions

  • Choose up to 3 plans

  • Rates

  • Plan Designs

  • Employer Enrollment Forms

  • Employee Enrollment Forms

Penalty B - 4980H(b)

Offer an ICHRA or individual coverage health reimbursement arrangement.

How to fix it.