The IRS regulations for ACA reporting require an employer to show that they offered the ‘right type of plan’ at the ‘right type of cost’ or else face penalties. This means that an employer must have offered minimum essential coverage and minimum value coverage at a cost no greater than 9.5% of the employees household income.
Problem! When you hired an employee you didn’t hire their whole household, so how are you to know what that number actually is? To deal with this issue the IRS allows for employers to make assumptions on what the household income is for an employee. […] Read more