Payroll Contribution

See Section 202 of the full Initiative text. Note: The Payroll Tax Contribution is referred to as the Health Security Assessment.

After an exemption, employers will contribute 8.5% for each employee based on their Gross Pay (GP).

Exemption = $15,000 - (Gross Pay x 0.25)

  • The exemption does not come into play for any Gross Pay above $60,000.

Calculation Example

Miguel has three employees: Jane grosses $90,000/yr and Trey and Sara gross $50,000/yr

Jane makes $90,000/yr which does not qualify for an exemption

  • 90,000 x 8.5% = $7650/yr or $638/mo

Trey and Sara make  $50,000 GP which would qualify for an exemption.

  • $50,000 x .25 = $12,500
  • $15,000 - 12,500 = $2,500
  • $50,000 - 2,500  x 8.5% = $4038/yr or $337/mo

Miguel’s total Payroll Tax contributions would be

Employee

Contribution

Jane

$7650/yr or $638/mo

Trey

$4038/yr or $337/mo

Sara

$4038/yr or $337/mo

Total

$15,726 or $1311/mo

More examples for illustration:

Gross Pay

Payroll Contribution

$20,000

$71/mo

$40,000

$248/mo

$60,000

$425/mo

$80,000

$567/mo

$100,000

$708/mo

Employers with less than 50 employees that experience a hardship due to the Payroll Contribution may be eligible for a waiver or reduction in of this assessment.