Posted on November 21th

By Caitlin Gadel, Attorney at Law.

Applicable large employers (ALEs) have a lot of potential penalty risk in 2016.  (Employers with 50+ Employees) Full time employees are designated as those working 30 hours or more on average per month.


In 2016, ALEs must offer coverage to 95% of their full-time employees (and their dependents).  ALE’s must offer dependents the chance to enroll in coverage, but employers do not have to pay for dependent coverage.  In 2016, overlooking just a few full-time employees, and not offering them coverage, could make you liable for Penalty A of the Employer Shared Responsibility (Pay vs. Play) rule.


Bullet Proof your company with documentation and “Declination Forms”: If your employees are on your medical plan the carrier invoice is itself documented proof of the company’s offer and the employee election along with other ‘employee election form/worksheet you have. However, most employers do not have proof they offered coverage to those employees that are NOT on your employer sponsored medical plan.  This is problematic if an employee who was offered coverage goes to the exchange and provides false information.  This employee may receive a premium tax credit and trigger a penalty for the employer.


Bullet Proof Employers should require employees to sign an acknowledgement form clearly stating that the employee was offered coverage, has the documentation to refute a penalty in the situation described above. Valued ExpertQuote clients that need “Declination forms” can contact their consultant directly or if you believe your situation complex we can arrange a call with legal ACA counsel.

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