Employer Mandate

Under Internal Revenue Code section 4980H, an Applicable Large Employer may be subject to a penalty if it does not offer its full-time employees, and their dependents, minimum essential coverage that is affordable and provides minimum value.

Who Counts as a Dependent?

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For purposes of the Employer Mandate only, the term dependent means an employee’s biological and adopted children.  Dependent does not include the spouse of an employee or the employee’s stepchildren or foster children.

Also, unlike the separate Affordable Care Act provision mandating coverage for eligible adult children, which requires coverage until the child reaches age 26, the offer of coverage for purposes of the Employer Mandate must extend through the end of the calendar month in which the child turns age 26.


Additional Information
Coverage of Dependents to Age 26