Is your agency an Applicable Large Employer?
Count full-time employees (30+ hours a week or 130+ a month) and add full-time equivalents from everyone else: total part-time hours in the month ÷ 120. Average the monthly totals over the prior calendar year.
Worked example. An Utah agency has 42 caregivers and office staff at 130+ hours a month, plus 20 part-time caregivers averaging 54 hours a month.
- Full-time employees: 42
- Part-time FTEs: 20 × 54 = 1,080 hours ÷ 120 = 9
- Total: 51 → the agency is an ALE.
Two home care specifics. Entities under common ownership are combined under the controlled-group rules, so multiple agency LLCs or franchise territories with the same owners count as one employer. And caregivers with variable hours can be classified using the IRS look-back measurement method (a 3–12 month measurement period followed by a stability period), which is how most agencies decide who must be offered coverage without re-running the math every month.
What an ALE owes if it doesn't comply (2026 amounts)
- 4980H(a), no offer: if you don't offer minimum essential coverage to at least 95% of full-time employees and any one of them gets a subsidy on HealthCare.gov, you owe $3,340 per full-time employee minus the first 30. In the example above: (42 − 30) × $3,340 = $40,080 a year, triggered by a single subsidized caregiver.
- 4980H(b), unaffordable offer: if you offer coverage that's unaffordable or below minimum value, you owe $5,010 for each full-time employee who enrolls in a subsidized marketplace plan.
Which Utah caregivers can actually trigger a penalty
Penalties are only triggered when a full-time employee actually receives a premium tax credit on the marketplace. Who can get one depends on income:
| Caregiver household income | Can they get a marketplace subsidy? | Can they trigger a penalty for you? |
|---|---|---|
| Below 138% FPL | No. Utah expanded Medicaid, so adults to 138% FPL qualify for Medicaid and cannot receive a marketplace credit | No |
| 138%–400% FPL | Yes | Yes — each one is a potential $5,010 (b) trigger, or the single trigger for the (a) penalty |
| Above 400% FPL | Generally no in 2026, now that the enhanced credits have expired | No |
Utah fully expanded Medicaid effective January 2020; adults to 138% FPL qualify. kff.org ↗
Utah uses the federal marketplace, HealthCare.gov, for individual coverage (Avenue H, its small-business exchange, was retired). healthcare.gov ↗
What counts as "affordable" for an Utah caregiver in 2026
Coverage is affordable if the caregiver's self-only contribution is no more than 9.96% of household income. Since you can't know household income, the IRS provides three safe harbors:
| Safe harbor | How it's calculated | 2026 monthly ceiling for an Utah caregiver |
|---|---|---|
| Federal poverty line | FPL × 9.96% ÷ 12 | $129.89 regardless of wage |
| Rate of pay | Lowest hourly rate × 130 hours × 9.96% | $93.87 at the $7.25 minimum |
| W-2 wages | 9.96% of Box 1 wages | Varies; known only after year-end |
The Utah-specific point: at Utah's $7.25 minimum, the rate-of-pay safe harbor is worse than the FPL figure. The crossover is about $10.03 an hour. If your lowest caregiver wage is below that, use the FPL safe harbor and price self-only coverage at or under $129.89 a month. Above it, rate of pay gives you more room. This is why low-cost MEC plans priced inside the FPL figure and CHOICE arrangements (formerly known as ICHRAs) are the two most common structures among agencies in low-minimum-wage states: either one blocks both the (a) and (b) penalties if set up correctly.
A CHOICE (ICHRA) counts as an offer of coverage. It's affordable if the caregiver's cost for the lowest-cost self-only silver plan on HealthCare.gov for their rating area, minus your monthly allowance, stays within the 9.96% test.
IRS Rev. Proc. 2025-25 ↗ · IRS HRAs ↗ · minimum wage → see the Utah wage & hour page
2026 federal compliance calendar (Utah adds nothing to this list)
| Date | Obligation | Who | Authority |
|---|---|---|---|
| Ongoing | Track caregiver hours under your measurement/stability periods | ALEs | IRS |
| Mar 2, 2026 | Furnish Form 1095-C to full-time employees, or post a website notice and furnish within 30 days on request | ALEs | IRS |
| Mar 31, 2026 | E-file Forms 1094-C/1095-C with the IRS (e-filing required at 10+ returns) | ALEs | IRS |
There is no Utah filing, no Utah furnishing deadline, and no Utah penalty. If you also employ caregivers who live in California, New Jersey, Massachusetts, Rhode Island, or DC under a self-insured plan, those states' reporting rules may apply to those employees; see the state-by-state ACA hub.
What Utah does not require
Utah has no state individual mandate or 1095 reporting, no auto-IRA program, and no paid family leave program. cri.georgetown.edu ↗
Frequently asked questions
We have 48 full-time caregivers and a handful of part-timers. Are we under the threshold?
Probably not. Add the part-timers' monthly hours and divide by 120. Two part-timers at 120 hours a month between them add one FTE, which puts you at 49; a third pushes you to 50 and ALE status the following year.
Does Utah require us to file anything about health coverage with the state?
No. Utah has no state individual mandate and no state 1095 reporting. Your only filing is federal (1094-C/1095-C) if you're an ALE.
Can a caregiver on Medicaid trigger a penalty against us?
No. Penalties are triggered only by full-time employees who receive a marketplace premium tax credit. Utah caregivers below 138% FPL qualify for Medicaid instead, so they can't trigger 4980H. Caregivers between 138% and 400% FPL can.
We pay $9.50 an hour. What's the most we can charge for self-only coverage?
Use the FPL safe harbor: $129.89 a month in 2026. At $9.50 the rate-of-pay method only allows $123.01, so FPL is the better harbor until wages pass about $10.03.
Does a CHOICE (ICHRA) count as offering coverage in Utah?
Yes. An affordable CHOICE (ICHRA) satisfies both the 4980H(a) offer requirement and the (b) affordability test, measured against the lowest-cost silver plan on HealthCare.gov for each caregiver's rating area.
We're under 50 FTEs. Is there any reason to offer coverage?
No mandate applies, but agencies under 50 commonly offer a MEC or CHOICE (ICHRA) to reduce turnover, and the same affordability math determines what you can charge caregivers.
Not legal advice. Confirm details with the cited official sources or counsel. Full disclaimer
- https://cri.georgetown.edu/states/
- https://www.healthcare.gov
- https://www.irs.gov/affordable-care-act/employers/identifying-full-time-employees
- https://www.irs.gov/affordable-care-act/employers/information-reporting-by-applicable-large-employers
- https://www.irs.gov/newsroom/health-reimbursement-arrangements-hras
- https://www.irs.gov/pub/irs-drop/rp-25-25.pdf
- https://www.irs.gov/pub/irs-drop/rp-25-26.pdf
- https://www.kff.org/medicaid/status-of-state-medicaid-expansion-decisions/