News & Updates

← Back to News & Updates

Final Rule Related to Premium Tax Credit Eligibility

Dec 23, 2016

HR360, Inc.

December 20, 2016​

Premium Tax Credit Eligibility Impacts Employer 'Pay or Play' Liability 

The IRS has released a final rule clarifying certain issues regarding the premium tax credit (PTC) for individuals who are not offered an annual opportunity to enroll in employer-sponsored coverage or provide inaccurate information to a Health Insurance Marketplace in order to become eligible for a PTC. 

How PTCs Impact Employers 

For 2016, ​applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees (FTEs), in the preceding calendar year—will generally be liable for an ​employer shared responsibility payment ("pay or play" penalty) only if: 

New PTC Eligibility Regulations 

Among other things, the final rule clarifies the following: 

The final rule is generally applicable for taxable years beginning after December 31, 2016. Click ​here to read the final rule in its entirety. 

For more information in eligibility, visit ​Premium Tax Credit for Individuals.

For questions, please contact a member of your b&p Sales Team - 888.722.3373.

Privacy Policy