The Taxpayer Advocate Service developed the Employer Shared Responsibility Provision (ESRP) Estimator to help employers understand how the provision works and learns how the provision may apply to them.

The provision applies to applicable large employers – generally, that means employers that had an average of at least 50 full-time employees (including full-time equivalent employees-FTEs), during the preceding calendar year.

If you are an employer, you can use the estimator to determine:

  • The number of your full-time employees, including FTEs,
  • Whether you might be an applicable large employers, and
  • If you are an applicable large employer, an estimate of the maximum amount of the potential liability for the employer shared responsibility payment that could apply to you based on the number of full-time employees that you report if you fail to offer coverage to your full-time employees.

A majority of businesses will fall below the 50 full-time employee (including FTEs) threshold and therefore the employer shared responsibility provisions will not apply to them. The estimator can help you determine if you are an applicable large employer if you are close to that threshold.

Have any questions regarding this notice? Don’t hesitate to call your Total Benefit Solutions health insurance specialists at (215)355-2121 today!