The ACA employer mandate requires Applicable Large Employers to OFFER dependent coverage but does NOT require the employer to subsidize it. Most Florida small businesses subsidize the employee-only tier and let employees pay 100% of dependent premiums — a path that's legally compliant but creates affordability tension for family-tier electors. The 2023 'family glitch' fix made it easier for low-income families to access marketplace subsidies when employer family coverage is unaffordable, changing the calculus for employers deciding how much to subsidize dependents.
| Strategy | Employee Affordability | Cost to Employer |
|---|---|---|
| 0% employer share on dependents (employee pays 100%) | Often unaffordable | Lowest |
| 50% employer share on dependents | Moderate | Higher |
| Same % as employee tier (e.g., 70% across all tiers) | Best | Highest |
| Flat dollar contribution by tier | Variable | Predictable |
For ACA employer mandate purposes (ALEs only), affordability is measured ONLY on the employee-only tier premium. The 2026 affordability threshold is 8.39% of household income. If the employee's share of employee-only premium is at or below 8.39% of household income, the offer is 'affordable' and the mandate is satisfied — regardless of dependent tier costs.
Under the family glitch fix, family members can qualify for ACA marketplace subsidies if the employer's offer of FAMILY coverage exceeds 8.39% of household income — even if the employee-only offer is affordable. This changed the calculus:
This means employers offering only token dependent subsidies can push families to the marketplace where they get federal subsidies — partially shifting the cost burden to taxpayers.
Premium structure: $750 employee-only, $1,950 family. Election mix: 6 employee-only, 4 family.
| Strategy | Annual Employer Cost | Annual Family Member Cost (avg) |
|---|---|---|
| 70% EE-only / 0% dependent | $58,500 | $14,400 |
| 70% EE-only / 30% dependent | $72,000 | $10,080 |
| 70% across all tiers | $93,240 | $7,020 |
| Flat $500/EE/month + 30% dependent | $74,400 | $10,080 |
For Florida small businesses balancing recruitment and budget:
No — small employers (<50 FTE) have no ACA mandate. The decision to offer dependent coverage is purely strategic. Most Florida carriers will allow employee-only-only enrollment if the employer chooses, but recruitment value is significantly less.
Yes — at full premium cost. The dependent premium is paid by the employee, typically through pre-tax payroll deduction via Section 125. The dependents get the same plan benefits as the employee.
Yes — the credit calculation includes employer share of all tier premiums (employee-only, EE+spouse, EE+children, family). Higher dependent subsidy → higher employer share → potentially larger credit (subject to FTE/wage caps).
A licensed Florida broker can model dependent contribution strategies with your specific census.
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