§1003. Employer Responsibility.

Health Care and Education Reconciliation Act of 2010

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) PAYMENT CALCULATION.-Subparagraph (D) of subsection (d)(2) of section 4980H of the Internal Revenue Code of 1986, as added by section 1513 of the Patient Protection and Affordable Care Act and amended by section 10106 of such Act, is amended to read as follows:

"(D) APPLICATION OF EMPLOYER SIZE TO ASSESSABLE PENALTIES.-

"(i) IN GENERAL.-The number of individuals employed by an applicable large employer as full-time employees during any month shall be reduced by 30 solely for purposes of calculating-

"(I) the assessable payment under subsection (a), or

"(II) the overall limitation under subsection (b)(2).

"(ii) AGGREGATION.-In the case of persons treated as 1 employer under subparagraph (C)(i), only 1 reduction under subclause (I) or (II) shall be allowed with respect to such persons and such reduction shall be allocated among such persons ratably on the basis of the number of full-time employees employed by each such person.".

(b) APPLICABLE PAYMENT AMOUNT.-Section 4980H of such Code, as so added and amended, is amended-

(b)(1) in the flush text following subsection (c)(1)(B), by striking "400 percent of the applicable payment amount" and inserting "an amount equal to 1⁄12 of $3,000";

(b)(2) in subsection (d)(1), by striking "$750" and inserting "$2,000"; and

(b)(3) in subsection (d)(5)(A), in the matter preceding clause (i), by striking "subsection (b)(2) and (d)(1)" and inserting "subsection (b) and paragraph (1)".

(c) COUNTING PART-TIME WORKERS IN SETTING THE THRESHOLD FOR EMPLOYER RESPONSIBILITY.-Section 4980H(d)(2) of such Code, as so added and amended and as amended by subsection (a), is amended by adding at the end the following new subparagraph:

"(E) FULL-TIME EQUIVALENTS TREATED AS FULL-TIME EMPLOYEES.-Solely for purposes of determining whether an employer is an applicable large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120.".

(d) ELIMINATING WAITING PERIOD ASSESSMENT.-Section 4980H of such Code, as so added and amended and as amended by the preceding subsections, is amended by striking subsection (b) and redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively.