Under the San Francisco Health Care Security Ordinance, covered employers in San Francisco are required to contribute to the health care costs of its covered employees. A covered employee is an employee who has been employed for more than 90 days and regularly works at least 8 hours per week in San Francisco.
Each quarter, covered employers are required to make health care expenditures to or on behalf of their covered employees. The required minimum health care expenditure is calculated by multiplying the total number of “hours paid” to that employee by the applicable expenditure rates, which for 2013 are as follows:
Employer Size (counting all employees, worldwide) | 2013 Expenditure Rate |
Large | All employers w/100+ employees | $2.33 per hour paid |
Medium | Businesses w/20-99 employees Nonprofits w/50-99 employees | $1.55 per hour paid |
Small | Businesses w/0-19 employees Nonprofits w/0-49 employees | Exempt from coverage |
Covered employers must submit the 2012 Annual Reporting Form by April 30, 2013. Employers who do not submit an annual report on time may be subject to penalties of $500 per quarter.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
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