Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Answer options:

50%

100%

95%

75%

How to approach this question

ACA Employer Mandate: Offer coverage to 95% of full-time employees to avoid the 'Hammer' penalty.

Full Answer

C.95%✓ Correct

To avoid the Employer Shared Responsibility Payment (Penalty A), an ALE must offer minimum essential coverage to at least 95% of its full-time employees (and their dependents).

Common mistakes

Guessing 100% or 50%.

Question 54 All questions Question 56

Practice the full CPA REG Practice Exam 3

72 questions · hints · full answers · grading

More questions from this exam

Q01A CPA is preparing an original tax return for a client who is claiming a refund based on a positi...Hard Q02A practitioner is representing a taxpayer in an IRS examination. The taxpayer has a 25% ownership...Hard Q03A tax return preparer willfully attempts to understate the tax liability on a client's return by ...Hard Q04Which of the following scenarios would most likely result in the assessment of a penalty for fail...Hard Q05Regarding the disciplinary authority of State Boards of Accountancy, which of the following state...Hard

View all 72 questions →