Fair Share Contribution Filing Frequency for 2009
12/18/2008
Executive Summary
The schedule of required Fair Share Contribution reporting for employers has recently been implemented for FSC 2009. Under this schedule, most firms will continue to file on an annual basis. Only firms that are likely to be liable for a Fair Share Contribution will be required to file with the state on a quarterly basis.
Overview of Fair Share Contribution
If an employer with 11 or more full-time equivalent employees (FTEs) does not make a "fair and reasonable" contribution to the health insurance of its full-time employees, that employer is required to pay a per-employee Fair Share Contribution of up to $295 annually. Firms with 50 or fewer FTEs will continue to be subject to the same Fair Share Contribution test that applied in 2007 and 2008. Thus, they will meet the "fair and reasonable" contribution standard if either 25% or more of their full-time employees are enrolled in the their group health plan, or they offered to contribute at least 33% towards the cost of health coverage for their full-time employees Recent regulation changes that become effective on January 1, 2009 (FSC 2009 Q2) require firms with 51 or more FTEs to pass both the take up and offer tests, or have at least 75% take-up among their full-time employees.
In addition, a statutory change was made during the summer of 2008 that required employers to file Fair Share compliance data on a quarterly basis. Since that change was announced, state agencies have collaboratively developed an approach to quarterly filing that ensures timely payment of Fair Share liability while minimizing administrative burdens on employers and state agencies.
Employer Filing Schedule for 2009
All employers that receive a notice to file from the Division of Unemployment Assistance will need to file Fair Share compliance data by Feb. 15 for FSC 2009 Q1 (based on Oct.-Dec. 2008) based on the "or" test (i.e., 25% take-up or 33% contribution passes), because regulatory revisions to the "fair and reasonable" standard are not effective until FSC 2009 Q2 (which starts January 1, 2009). Firms that fail the "or" test or will likely fail under the "fair and reasonable" test criteria that will be in effect starting in January of 2009 will be required to continue filing each quarter during FSC 2009 (along these lines, firms that are close to or greater than 51 FTEs will be measured against the new Q2 test criteria to determine if they must continue filing on a quarterly basis). All others will not be required to file again until the first quarter of 2010.
Employer Filing Schedule for 2010
All employers that receive a notice to file from the Division of Unemployment Assistance will need to file Fair Share compliance data for FSC 2010 Q1 (Oct.-Dec. 2009). Firms that were exempt from quarterly filing for FSC 2009 Q2, Q3 and Q4 will need to report data for FSC 2010 Q1 and will also be required to certify that they maintained compliance for FSC 2009 Q2, Q3, and Q4. If these firms solidly pass FSC 2010 Q1 and certify 2009 compliance, no additional filing is required until FSC 2011 Q1. If these firms report non- compliance for FSC 2009 Q2, Q3, or Q4, the firm must complete a full filing for each non-compliant quarter. Firms that were required to file quarterly in 2009 will be reassessed in Q1 of 2010 to determine whether they will have to file quarterly or annually in 2010. Any firm that passes by a sufficient margin in FSC 2010 Q1 will be able to file on an annual schedule.
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