Q 1 Generally in 2016 which of the folloing events will trig

Q. 1) Generally, in 2016, which of the folloing events will trigger the Employer Shared Responsability Penalty?

a) A part-ime employee who works for employer with 50 or more employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit.

b) A full-time employee who works for employer with 50 or more employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit

c) A part-ime employee who works for an employer with fewer than 50 employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit.

d) A full-time employee who works for employer with fewer than 50 employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit.

Solution

Ans. is b) A full-time employee who works for employer with 50 or more employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit.

Explanation: As per affordable care act Employer having More than 50 full time employees also referred as ALE are required to offer minimum essential coverage to at least 95% of their employees and if requirement is not fullfilled then a penalty of U/S 4980H(b) applies, if at least one full time employees gets qualified health insurance from marketplace and premium tax credit.