Under health reform, starting this year, small businesses that choose to offer coverage will begin to receive tax credits of up to 35 percent of their premium contributions to help make employee coverage more affordable.
If an employee had enough negative adjustments, that could push the employee share of the premium for self-only coverage above 9.5% of AGI even if it was below 9.5% of W-2 wages.
And like other surveys, the Towers Watson report shows employers are continuing to shift the cost of the total premium onto their workers with the employee share of the costs rising to 37 percent this year from 34 percent in 2011.
Company officials said many corporations of Verizon's size now have employee's picking up 26% of their premium payments in an environment where costs are advancing at 12% per year.
Given the heavy emphasis on lifestyle and wellness under Obamacare including a provision allowing employers to incentivize employee wellness with up to 30 percent of their health insurance premium look for Gary to help dispel some unscientific myths that undermine these programs.
However, the employer will have to pay a shared responsibility fee if their employee purchases coverage through a new exchange with the help of a premium tax credit targeted toward middle to low income families.
Generally, section 4980H(b) liability may arise because, with respect to a full-time employee who has been certified to the employer as having received an applicable premium tax credit or cost.