no
AFFORDABLE
< 9.5% AGI?
NO
PENALTY
yesyes
yes
yes
yes
no
NO
PENALTY
no
yes
no
no
no
no
NO
PENALTY
PENALTY IS LESSER OF $2,000
TIMES NUMBER OF FULL-TIME
EMPLOYEES MINUS 30 OR NUMBER OF
FULL-TIME EMPLOYEES RECEIVING
TAX CREDIT TIMES $3,000
PENALTY = $2,000 TIMES
NUMBER OF FULL-TIME
EMPLOYEES MINUS 30
yes
no
IS AMOUNT
50 OR MORE?
NOT
COVERED BY
PPACA
AFFILIATED
WITH LARGER
ENTITY?
IS IT 50 OR MORE
ONLY IN 4 MONTHS
OR 120 DAYS?
yesyes
no
yes
COVERED
BY
PPACA
no
no
yes
yes
Employer Play or Pay Penalty Structure FLOWCHART 2
Is Employer Covered by PPACA? FLOWCHART 1
STEP B:
Insert number of all part-time hours
worked for each month of year; sum
up all 12 months and divide by 120.
Add A to B.
IS AMOUNT
50 OR MORE?
STEP A:
Insert number of 30/hr/week
or 130/hr/month employees for
each month of year: sum up all 12 months
and divide by 12
> 50 W- 2
EMPLOYEES?
FULL & PART TIME,
TEMPS
MINIMUM
ESSENTIAL
COVERAGE?
OFFER TO 95%?
OFFER
WITHIN 90 DAYS?
OFFER
INSURANCE?
TAX CREDIT
FOR FULL-TIME
EMPLOYEES?
TAX CREDIT
FOR FULL-TIME
EMPLOYEES?
