CCSA Answers: The Affordable Care Act Employer Shared Responsibility Mandate and Charter Schools

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April 23, 2018 Question: Does the Employer Shared Responsibility Mandate, established by the Affordable Care Act (ACA) apply to charter schools?

Answer: Yes, depending on the size of the charter school. The Employer Shared Responsibility Mandate (ESRM) requires applicable large employers (ALEs), or employers that have 50 or more full-time employees, including charter public schools, to offer coverage that is affordable and of minimum value to 95% of those full-time employees. Full-time employees are defined as those who work at least 30 hours a week or 130 hours per month. Since 2015, each ALE has been required to provide its employees and the Internal Revenue Service (IRS) information about the health coverage offered to full-time employees. There are monetary penalties for non-compliance with the ESRM. ALEs, including charter public schools, should respond within 30 days to any IRS inquiries, or a penalty will be levied.