Free Rider Penalty Flowchart
Will You be Impacted by the Free Rider Penalty?
There are many open questions about the Free Rider Penalty, which will need to be answered by regulations. However, the flowchart below provides a practical starting point for employers to assess how their current plans may be impacted by the Free Rider Penalty.
The interpretations below are based on our current understanding of the statutory language in the absence of regulatory guidance. Other interpretations may be equally valid. In other words, the following flowchart is not meant to provide all of the information an employer will need to comply with the Free Rider Penalty. To learn more about the Free Rider Penalty, click here.
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Additional Resources
American Fidelity Assurance Company does not provide tax or legal advice.
ESB-939(0411)