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Section 1513

SEC. 1513. SHARED RESPONSIBILITY FOR EMPLOYERS.

[a] IN GENERAL.—Chapter 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

"SEC. 4980H. SHARED RESPONSIBILITY FOR EMPLOYERS REGARDING HEALTH COVERAGE.

"[a] LARGE EMPLOYERS NOT OFFERING HEALTH COVERAGE.— If—

"[1] any applicable large employer fails to offer to its full-time employees [and their dependents] the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan [as defined in section 5000A[f][2]] for any month, and

"[2] at least one full-time employee of the applicable large employer has been certified to the employer under section 1411 of the Patient Protection and Affordable Care Act as having enrolled for such month in a qualified health plan with respect to which an applicable premium tax credit or cost-sharing reduction is allowed or paid with respect to the employee, then there is hereby imposed on the employer an assessable payment equal to the product of the applicable payment amount and the number of individuals employed by the employer as full-time employees during such month.

"[b] LARGE EMPLOYERS WITH WAITING PERIODS EXCEEDING 30 DAYS.—

"[1] IN GENERAL.—In the case of any applicable large employer which requires an extended waiting period to enroll in any minimum essential coverage under an employer-sponsored plan [as defined in section 5000A[f][2]], there is hereby imposed on the employer an assessable payment, in the amount specified in paragraph [2], for each full-time employee of the employer to whom the extended waiting period applies.

"[2] AMOUNT.—For purposes of paragraph [1], the amount specified in this paragraph for a full-time employee is—

"[A] in the case of an extended waiting period which exceeds 30 days but does not exceed 60 days, $400, and

"[B] in the case of an extended waiting period which exceeds 60 days, $600.

"[3] EXTENDED WAITING PERIOD.—The term "extended waiting period" means any waiting period [as defined in section 2701[b][4] of the Public Health Service Act] which exceeds 30 days.

"[c] LARGE EMPLOYERS OFFERING COVERAGE WITH EMPLOYEES WHO QUALIFY FOR PREMIUM TAX CREDITS OR COST-SHARING REDUCTIONS.—

"[1] IN GENERAL.—If—

"[A] an applicable large employer offers to its full-time employees [and their dependents] the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan [as defined in section 5000A[f][2]] for any month, and

"[B] 1 or more full-time employees of the applicable large employer has been certified to the employer under section 1411 of the Patient Protection and Affordable Care Act as having enrolled for such month in a qualified health

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plan with respect to which an applicable premium tax credit or cost-sharing reduction is allowed or paid with respect to the employee, then there is hereby imposed on the employer an assessable payment equal to the product of the number of full-time employees of the applicable large employer described in subparagraph [B] for such month and 400 percent of the applicable payment amount.

"[2] OVERALL LIMITATION.—The aggregate amount of tax determined under paragraph [1] with respect to all employees of an applicable large employer for any month shall not exceed the product of the applicable payment amount and the number of individuals employed by the employer as full-time employees during such month.

"[d] DEFINITIONS AND SPECIAL RULES.—For purposes of this section—

"[1] APPLICABLE PAYMENT AMOUNT.—The term "applicable payment amount" means, with respect to any month, :sup:1?12 of $750.

"[2] APPLICABLE LARGE EMPLOYER.—

"[A] IN GENERAL.—The term "applicable large employer" means, with respect to a calendar year, an employer who employed an average of at least 50 full-time employees on business days during the preceding calendar year.

"[B] EXEMPTION FOR CERTAIN EMPLOYERS.—

"[i] IN GENERAL.—An employer shall not be considered to employ more than 50 full-time employees if—

"[I] the employer's workforce exceeds 50 full-time employees for 120 days or fewer during the calendar year, and

"[II] the employees in excess of 50 employed during such 120-day period were seasonal workers.

"[ii] DEFINITION OF SEASONAL WORKERS.—The term "seasonal worker" means a worker who performs labor or services on a seasonal basis as defined by the Secretary of Labor, including workers covered by section 500.20[s][1] of title 29, Code of Federal Regulations and retail workers employed exclusively during holiday seasons.

"[C] RULES FOR DETERMINING EMPLOYER SIZE.—For purposes of this paragraph—

"[i] APPLICATION OF AGGREGATION RULE FOR EMPLOYERS.—All persons treated as a single employer under subsection [b], [c], [m], or [o] of section 414 of the Internal Revenue Code of 1986 shall be treated as 1 employer.

"[ii] EMPLOYERS NOT IN EXISTENCE IN PRECEDING YEAR.—In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is an applicable large employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year.

"[iii] PREDECESSORS.—Any reference in this subsection to an employer shall include a reference to any predecessor of such employer.

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"[3] APPLICABLE PREMIUM TAX CREDIT AND COST-SHARING REDUCTION.—The term "applicable premium tax credit and cost-sharing reduction" means—

"[A] any premium tax credit allowed under section 36B,

"[B] any cost-sharing reduction under section 1402 of the Patient Protection and Affordable Care Act, and

"[C] any advance payment of such credit or reduction under section 1412 of such Act.

"[4] FULL-TIME EMPLOYEE.—

"[A] IN GENERAL.—The term "full-time employee" means an employee who is employed on average at least 30 hours of service per week.

"[B] HOURS OF SERVICE.—The Secretary, in consultation with the Secretary of Labor, shall prescribe such regulations, rules, and guidance as may be necessary to determine the hours of service of an employee, including rules for the application of this paragraph to employees who are not compensated on an hourly basis.

"[5] INFLATION ADJUSTMENT.—

"[A] IN GENERAL.—In the case of any calendar year after 2014, each of the dollar amounts in subsection [b][2] and [d][1] shall be increased by an amount equal to the product of—

"[i] such dollar amount, and

"[ii] the premium adjustment percentage [as defined in section 1302[c][4] of the Patient Protection and Affordable Care Act] for the calendar year.

"[B] ROUNDING.—If the amount of any increase under subparagraph [A] is not a multiple of $10, such increase shall be rounded to the next lowest multiple of $10.

"[6] OTHER DEFINITIONS.—Any term used in this section which is also used in the Patient Protection and Affordable Care Act shall have the same meaning as when used in such Act.

"[7] TAX NONDEDUCTIBLE.—For denial of deduction for the tax imposed by this section, see section 275[a][6].

"[e] ADMINISTRATION AND PROCEDURE.—

"[1] IN GENERAL.—Any assessable payment provided by this section shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as an assessable penalty under subchapter B of chapter 68.

"[2] TIME FOR PAYMENT.—The Secretary may provide for the payment of any assessable payment provided by this section on an annual, monthly, or other periodic basis as the Secretary may prescribe.

"[3] COORDINATION WITH CREDITS, ETC..—The Secretary shall prescribe rules, regulations, or guidance for the repayment of any assessable payment [including interest] if such payment is based on the allowance or payment of an applicable premium tax credit or cost-sharing reduction with respect to an employee, such allowance or payment is subsequently disallowed, and the assessable payment would not have been required to be made but for such allowance or payment.".

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[b] CLERICAL AMENDMENT.—The table of sections for chapter 43 of such Code is amended by adding at the end the following new item:

"Sec. 4980H. Shared responsibility for employers regarding health coverage.".

[c] STUDY AND REPORT OF EFFECT OF TAX ON WORKERS" WAGES.—

[1] IN GENERAL.—The Secretary of Labor shall conduct a study to determine whether employees" wages are reduced by reason of the application of the assessable payments under section 4980H of the Internal Revenue Code of 1986 [as added by the amendments made by this section]. The Secretary shall make such determination on the basis of the National Compensation Survey published by the Bureau of Labor Statistics.

[2] REPORT.—The Secretary shall report the results of the study under paragraph [1] to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate.

[d] EFFECTIVE DATE.—The amendments made by this section shall apply to months beginning after December 31, 2013.