Health Care Fund Contribution Assessment Decision Tree

Note: An employer must obtain a completed Form HC-2, Declaration of Health Care Coverage, from each employee not covered (uncovered) by the health care plan offered by the employer. A failure to obtain Form HC-2 from uncovered employees could result in an employer paying a higher assessment. 

Question 1: Did you have 5 or more employees in the previous quarter? 

• If Yes, continue to Question 2 
• If No, check the box on Line 10 of Form WHT-436. Do not continue. No Health Care Contributions will be due for this quarter. [STOP] 

Question 2: Do you offer to pay any part of the cost of health care coverage for some or all of your employees? 

• If Yes, complete Section 2, and then consider the Section 2 Decision Tree for each individual employee. 
• If No, complete Section 1. All employees are considered uncovered. You must include all hours worked for all employees in the FTE calculation.

HC-2 Section 2 Decision Tree 

Complete this decision tree for each individual employee. 

Question 1: For each employee, is the employee offered health coverage by you?

• If No, continue to Section 2 Decision Tree Part A 
• If Yes, continue to Section 2 Decision Tree Part B 

HC-2 Section 2 | Decision Tree Part A 

Question A1: Do you offer coverage to all regular full-time employees AND Can the employee be classified as “seasonal” or “part-time”? (Definitions available in Guide to the Health Care Fund Contribution Assessment p. 8) 

• If Yes to both questions, continue to question A2. 
• If No to either question, the employee is considered uncovered, and all hours are included in FTE calculation 

Question A2: On Form HC-2, Declaration of Health Care Coverage, did the employee check the box “I am a part-time or seasonal employee, and I do not have health care coverage or I am covered by Medicaid”? 

• If Yes, the employee is considered uncovered, and all hours for this employee are included in FTE calculation. 
• If No, continue to Question A3. 

Question A3: Did the employee work more than the time/hours allowed to be classified “seasonal” or “part-time”? 

• If Yes, the employee is considered uncovered, and all hours for this employee are included in FTE calculation. 
• If No, the employee is considered covered as long as you offer health care coverage to all of your regular, full-time employees, and the employee has coverage other than Medicaid. Hours are excluded from FTE calculation. 

HC-2 Section 2 | Decision Tree Part B 

Question B1: Does the employee choose to participate in the plan? 

• If Yes, the employee is considered covered, and all hours for this employee are excluded from FTE calculation. 
• If No, continue to question B2. 

Question B2: Did the employee indicate that 1) they have coverage on Form HC-2, AND 2) that coverage is from a source other than Medicaid or the Vermont Health Benefit Exchange (VHBE)? 

• If Yes to both questions, the employee is considered covered, and the employee’s hours are excluded from FTE calculation. 
• If No to either question, the employee is considered uncovered, and all hours for this employee are included in FTE calculation.