Employer Shared Responsibility Provisions Under the ACA

At HotFoot Recruiters, one of our foremost priorities is to stay informed and be in compliance with current and future employment laws. We have recently changed our practices to meet the new employer responsibilities associated with the Affordable Care Act.

The following passage outlines the criteria and implications of the Affordable Care Act for large employers.

Employer Shared Responsibility Provisions Under the Affordable Care Act

Employers employing at least a certain number of employees (generally 50 full-time employees or a combination of full-time and part-time employees that is equivalent to 50 full-time employees) are subject to the Employer Shared Responsibility provisions under section 4980H of the Internal Revenue Code (added to the Code by the Affordable Care Act). As defined by the statute, a full-time employee is an individual employed on average at least 30 hours of service per week. An employer that meets the 50 full-time employee threshold is referred to as an applicable large employer.

Under the Employer Shared Responsibility provisions, if these employers do not offer affordable health coverage that provides a minimum level of coverage to their full-time employees (and their dependents), the employer may be subject to an Employer Shared Responsibility payment if at least one of its full-time employees receives a premium tax credit for purchasing individual coverage on one of the new Affordable Insurance Exchanges, also called a Health Insurance Marketplace.

-This information was gathered from irs.gov

What Have We Changed To Comply?

Effective January 1, 2016, HotFoot Recruiters will offer affordable health coverage that meets the level of coverage set forth by the Employer Shared Responsibility provisions to each contracted employee after the 1st of the month following their 60th day of employment.

Our main priority is not only to comply with the newly established employer responsibilities, but also to ensure that our contractors are aware of the benefits available to them. Furthermore, we have clearly communicated with each of our clients to ensure that all parties are aware of the addition of contractor benefits.

If any of our contractors or clients have questions about HotFoot Recruiters compliance with the new Employer Shared Responsibility provisions under the Affordable Care Act, please don’t hesitate to contact us.

Thank you to both our clients and contractors. We look forward to strengthening our partnership through this transition!


The HotFoot Recruiters Team