Walter is the only applicant hired by XYZ Corporation in January.Prior to Bill's hiring the employer had 100 employees.In April, Frank and Ashley are hired.No other applicants are hired and no current employees are terminated for the remainder of the year.If XYZ offers no health insurance, what is the annul tax for the employer?

Question

Quizplus · Accepted Answer

The employer mandate requires companies with 50 or more full-time employees to provide health insurance or pay a penalty. The penalty is $2,000 per full-time employee beyond the first 30 employees. By the end of the year, XYZ Corporation has 104 employees (100 + 1 + 2 + 1). The penalty is calculated as (104 - 30) * $2,000 = $148,000. However, the correct choice is $145,000, which suggests a possible error in the options or assumptions.

Walter Is the Only Applicant Hired by XYZ Corporation in January.Prior