Employers With Employees in San Francisco Need to File Report

John GarnerCompliance, Legislative Updates, Resources

All employers covered by San Francisco’s Health Care Security Ordinance (or the City’s new Fair Chance Ordinance) are required to submit the 2014 Employer Annual Reporting Form by April 30, 2015 to avoid penalties of $500 per quarter. The 2014 Employer Annual Reporting Form is now available online.

Please carefully review the instructions before you begin.

Please note that you cannot save the online form and return to it later. Employers may find it helpful to prepare answers using the Annual Reporting Form PDF preview before beginning.

Under the Health Care Security Ordinance (HCSO), all covered employers must meet the following obligations:

  1. Satisfy the Employer Spending Requirement by making required health care expenditures on behalf of all covered employees (those who have been employed for more than 90 days and who regularly work at least 8 hours per week in San Francisco) at the following rates:
     Employer Size Number of Employees    2015 Expenditure Rate
     Large All employers w/100+ employees  $2.48 per hour payable
     Medium Businesses w/20-99 employees Nonprofits w/50-99 employees  $1.65 per hour payable
     Small Businesses w/0-19 employees Nonprofits w/0-49 employees  Exempt
  2. Maintain records sufficient to establish compliance with the employer spending requirement.
  3. Post an HCSO Notice in all workplaces with covered employees.
  4. Submit an Annual Reporting Form to the City & County of San Francisco Office of Labor Standards Enforcement (OLSE) by April 30th of each year.
  5. For details about these and other requirements, contact the OLSE at hcso@sfgov.org or 415.554.7892.
  6. One way that employers may comply with the HCSO’s spending requirement is by making contributions to the City Option on behalf of their covered employees.  Depending upon eligibility, employees who receive these contributions will receive:
    • free or discounted enrollment in the Healthy San Francisco program, or
    • a Medical Reimbursement Account to pay for out-of-pocket medical expenses.

Upon contributing to the City Option, employers must provide their employees with a one-time Employee Health Care Payment Confirmation (PDF) (English) (Chinese) (Spanish).

To learn more about contributing to the City Option, visit www.sfcityoption.org or contact City Option Program Management at employerservices@sfcityoption.org or (415) 615-4492.

Businesses are neither required to, nor prohibited from, imposing surcharges on their customers to offset the cost of complying with the Health Care Security Ordinance.  However, employers that elect to impose such surcharges must comply with specific requirements.

On May 1, 2009, the State Board of Equalization issued a Special Notice (PDF) regarding the taxability of such surcharges.

HCSO Resources

Full text of the Health Care Security Ordinance.

Full text of the Final Regulations Implementing the Employer Spending Requirement (PDF).

2015 Official Notice (PDF) (must be posted at workplaces as of January 1, 2015).

Employer Spending Requirement Calculator

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