Some municipalities, like the City of Houston , use a "Pay or Play" program for contractors. Tax and Employee Benefit Consequences of Healthcare Reform
: The "pay or play" status often kicks in upon a specific milestone, such as the commencement of principal photography . 2 : Pay or Play
In the context of U.S. healthcare policy, "Pay or Play" is the informal name for the Employer Shared Responsibility Provisions under the ACA. Some municipalities, like the City of Houston ,
: Estimated penalties for non-compliance include approximately $3,340 per employee for failing to offer coverage and $5,010 per employee if the coverage offered is deemed unaffordable. 2. Entertainment Industry: Talent Guarantees healthcare policy, "Pay or Play" is the informal
: Employers that do not provide such coverage must pay a penalty tax to the IRS for each full-time employee.
: If a project is canceled or the talent is replaced, the producer is still legally bound to pay the agreed-upon fixed compensation . 3. Local Government: Contractor Programs
: Applicable Large Employers (ALEs)—generally those with 50 or more full-time equivalent employees —must offer affordable health insurance that meets "minimum essential coverage" standards to at least 95% of their full-time staff.