The estimator has 4 steps:
- Tax year
- Employer Information
- Payment Scenarios
- Optional: Employee Status
When you are finished with each step, click "Next" to proceed. Alternatively, you may go to any of the steps by clicking on the Steps on the left side of the estimator.
The estimator starts by asking for the tax year. Some figures used in determining the payment are indexed to inflation. Because of this, for future years the estimator cannot provide a detailed estimate.
Determining the Payment for 2015
This estimator is designed only for 2016 and forward.
For 2015, transition rules are applied in determining the payment. For information about these rules and how to determine the payment for 2015, see the ESRP Regulations.
This step estimates whether you have 50 or more full-time employees (including full-time equivalents). If so, you are an applicable large employer and subject to the provision. It will also ask about your status as an employer - if you were in existence for the preceding calendar year and whether you are part of an aggregated group of employers.
Existence as an Employer
An employer is treated as not having been in existence throughout the preceding calendar year only if the employer was not in existence on any business day in the preceding calendar year.
If you were in existence as an employer in the preceding calendar year: Enter the employee figures for the preceding calendar year.
If you were not in existence as an employer in the preceding calendar year: An employer not in existence throughout the preceding calendar year is an applicable large employer for the current calendar year if the employer is reasonably expected to employ an average of at least 50 full-time employees (including full-time equivalent employees) on business days during the current calendar year and it actually employs an average of at least 50 full-time employees (including full-time equivalent employees) on business days during the calendar year.
Enter the employee figures that you reasonably expect to have for the calendar year.
Member of an Aggregated Group
An aggregated group of employers is a group of commonly owned or otherwise related or affiliated employers, which must combine their employees to determine whether they together constitute an applicable large employer. All employers that are treated as a single employer under IRC section 414(b), (c), (m), or (o) are treated as members of an aggregated group.
If you are not a member of an aggregated group of employers: The estimator will ask you to enter the number of your full-time employees and seasonal workers as well as the total hours of your seasonal workers and non-seasonal employees who are not full-time.
If you are a member of an aggregated group of employers: The estimator will ask you to enter the total number of all members - including yourself - per month of the full-time employees and full-time seasonal workers, and hours of the part-time employees and part-time seasonal workers. Additionally, enter the total number of your own full-time employees and full-time seasonal workers. The estimates provided in Step Three – Payment Scenarios will be based on the number of your own full-time employees and not on the full-time employees of other members of your aggregated group.
This step will show you what the payments may be based on the employee information you enter in Step 2. It will also show you comparisons with other scenarios by allowing you to change the number of full-time employees used to determine the payment.
There are two types of payments: the payment under 4980H(a) and 4980H(b). You cannot be liable for more than one of these payments in the same month.
Either payment depends on whether any of your employees receives the premium tax credit. You may not know whether your employees receive the credit before hearing from the IRS, so the estimates below are those of the most you may have to pay under both section 4980H(a) and section 4980H(b).
For 4980H(a), the estimator assumes that:
- You do not make an offer of coverage to at least 95% of your full-time employees and
- At least one full-time employee receives the premium tax credit.
For the payment under 4980H(b), the estimator assumes that:
- You do make an offer of coverage to at least 95% of your full-time employees, but
- ALL of your full-time employees receive the premium tax credit.
The estimator contains a table for each payment that shows the estimated payments per month, based on the employee information you enter.
The payments shown in the "Full-time Employee" and "Estimated Payment" columns are estimated based on the full-time employee information you entered in Step 2. Compare this with other scenarios by changing the number of full-time employees in the "Compare" column.
This step is optional. It is a guide to the two methods of measuring your employees' hours of service and allows you to enter information on one employee and see how the methods work to make a determination.
This step is intended to help you understand the provision – not to make the full-time status determination for your employees.
The two measurement methods are:
- The monthly measurement method, and
- The look-back measurement method.
Choose which method you use and enter the information about it and an employee. The estimator will guide you through how the full-time status determination is made. More information about each method is in The Provision section.