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Section 4980H Transition Relief: A Case Study

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Section 4980H Transition Relief -50-99 employees: no payment is required under section 4980H(a) or (b) for 2015 if you did not reduce the size of your workforce, overall service hours, or health coverage between Feb. 9, 2014-Dec. 31, 2014. -100+ employees: if you had 100+ full-time employees on business days in 2014 and owe a payment under 4980H(a), calculate your 2015 transition relief by reducing your number of full-time employees by your allocable share of 80 (rather than 30). Qualifying Offer Method Transition Relief To ease your reporting burden, the IRS offers this method to employers who provide a bronze-level or higher plan to employees and their families where the cost to the employee is less than $1,100. For 2015 only, if you made

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