SF HCSO Required Employer Reporting

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Co-Founder & COO
Lumity, Inc.

2020 Employer Annual Reporting Canceled!

On May 4, 2021, the City of San Francisco waived the employer reporting requirement for the Health Care Security Ordinance (HCSO) and Fair Chance Ordinance (FCO) for calendar year 2020 due to the ongoing COVID-19 public health crisis. 

Even though the 2020 HCSO reporting deadline has been canceled, please be aware that the quarterly employer spending requirement remains in place. To remain compliant, you must:

  1. Maintain sufficient records that establish your compliance with the spending requirement, and
  2. Post the 2021 HCSO Poster at all workplaces or job sites

Background on the HCSO

The San Francisco HCSO applies to an employer even if only one employee performs work in San Francisco. Employers are bound by the HCSO based on the total number of employees in all locations throughout the world, not only in San Francisco:

  • For-profit employers: 20+ persons performing work per quarter
  • Nonprofit employers: 50+ persons performing work per quarter

Employer Spending Requirement

The HCSO sets forth an Employer Spending Requirement, which is a dollar/hour amount to be spent towards health care benefits, for “covered employees”—generally, those employees who have been employed over 90 days and work 8 or more hours per week within the HCSO jurisdiction.

Health Care Expenditures, as prescribed in the HCSO, must be completed for each covered employee no later than 30 days past the calendar quarter. Options to satisfy the employer spending requirement include:

  • Provide health insurance
    • Medical, dental, and/or vision premiums
    • Cover employees and/or their spouses, partners, children, or other dependents
  • Contribute to the SF City Option (MRA or Healthy San Francisco)
  • Contribute to a Health Savings Account (HSA), Medical Savings Account, or another irrevocable reimbursement account
  • Combination of these options

Health Care Expenditure Rates for 2021

  • $3.18 per hour for large businesses (100 or more employees worldwide).
  • $2.12 per hour for medium-sized businesses (20 - 99 employees worldwide)
  • The payable hours cap is 172 hours/month
  • 2021 Exemption Threshold: managerial, supervisory, and confidential employees who earn more than $107,991 annually (or $51.92 per hour) are exempt.

If you’re unsure whether you’re a covered employer or if your benefits are compliant with the HCSO expenditures, please contact Lumity for a complimentary benefits consultation. 

Want to Learn How A Transition From PEO Would Work For Your Company? Schedule a Free Benefits Consultation Today.