What’s the lowest cost option to avoid paying the Employer Mandate (a) tax penalty?
The Affordable Care Act (ACA) requires employers with 50 or more full-time and full-time equivalent employees, to provide coverage to employees with 30 or more hours of service per week or pay a tax penalty. Offering a Minimal Essential Coverage Affordable Minimum Value (MECAMV) plan through FrankCrum offers employers the least costly solution to comply with the employer mandate portion of health care reform.
MECAMV plans provide a low cost alternative for an applicable large employer
- ACA compliant wellness, immunizations, physician services, hospitalization, etc.
- No employer penalty
- Enrolled employees avoid tax penalty
- Employer remains competitive
Example Employer Cost of MECAMV Plan
75 full-time employees
x $80/month* for MEC+ any employee who enrolls in AMV**
TOTAL: $72,000 + AMV enrollees
*Estimated monthly MEC premium
**Estimated $275/month for the employer contribution. Single digit enrollment on an average and often there’s zero enrollment. AMV has no minimum participation requirements unlike major medical
Legal Notice – The purpose of this illustrative information is to assist in the discussion of risk, concerns and general requirements. It is not legal counsel, tax advice or judgment of a business’s compliance or non-compliance. It is recommended that you seek qualified tax and legal counsel familiar with your particular circumstances before taking any action.