It has nothing to do with union fees. The multi-employer plan transition relief (2E) provides that a contributing employer is treated as offering coverage, and generally protected from a penalty, if the following three criteria are met:
- The employer is required to contribute to a multi-employer plan on behalf of an employee pursuant to a collective bargaining agreement
- Coverage is offered under the multi-employer plan to employees who meet the plan’s eligibility rules
- The coverage offered by the plan is affordable and provides minimum value
The key here is IF the collective bargaining agreement stipulated that the employer contribute for health coverage. If a union contract stipulates the employer contribute to a health plan, then the theory is that the employer did not have 100% control of the ACA guidelines. If the contract does not stipulate any health coverage then the employees would be handled as any other employee.
If the plan is self-insured, they must report each individual covered under Part III of the 1095-C.
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