ACA ACA Employer Mandate & Workplace Benefits

Question 1

Under the ACA employer mandate, how many full-time equivalent employees must an employer have to be considered an Applicable Large Employer (ALE)?

Accepted Answer

50 or more

Answer

An Applicable Large Employer (ALE) under the ACA is defined as an employer with 50 or more full-time equivalent employees in the prior calendar year.

Question 2

What IRS form must ALEs file annually to report information about health coverage offered to full-time employees?

Accepted Answer

Form 1094-C

Answer

ALEs must file Form 1094-C (transmittal) along with Form 1095-C for each full-time employee to report health coverage information to the IRS.

Question 3

Under the ACA, what is the minimum value standard that employer-sponsored health plans must meet?

Accepted Answer

The plan must cover at least 60% of the total allowed costs

Answer

ACA minimum value requires that an employer-sponsored plan pay at least 60% of total allowed costs for a standard population.

Question 4

What is the ACA affordability threshold for employer-sponsored coverage based on in 2024?

Accepted Answer

Coverage must cost no more than 8.39% of the employee's household income

Answer

For 2024, employer-sponsored self-only coverage is considered affordable if the employee's required contribution does not exceed 8.39% of household income.

Question 5

Which penalty under ACA Section 4980H(a) applies when an ALE fails to offer minimum essential coverage to at least 95% of its full-time employees?

Accepted Answer

The 'A' penalty triggered if at least one full-time employee receives a premium tax credit

Answer

The 4980H(a) 'A' penalty is triggered when an ALE fails the 95% offer requirement and at least one full-time employee receives a premium tax credit on the Marketplace.

(ACA) Affordable Care Act Certified Practice Test

(ACA) Affordable Care Act Certified Practice Test

ACA ACA Employer Mandate & Workplace Benefits