September 11, 2024
The SFHCSO requires covered employers (generally, employers with 20 or more employees, at least one of whom works in San Francisco) to spend a minimum amount on healthcare for their San Francisco employees. The healthcare expenditure rate varies depending on the size of the employer.
As of January 1, 2025, the healthcare expenditure rate for large employers with 100 or more employees increases to $3.85 per hour payable (up from $3.51 per hour in 2024). For medium-size employers with 20 to 99 employees and nonprofit employers with 50 to 99 employees, the expenditure rate will rise to $2.56 per hour payable (up from $2.34 per hour payable in 2024). Employers with fewer than 20 employees and nonprofit employers with fewer than 50 employees are exempt.
The salary threshold for excluded employees has also increased for 2025. Beginning January 1, 2025, if an employee is a managerial, supervisorial, or confidential employee earning $125,405 per year ($60.29 per hour) or more, that employee is exempt from the SFHCSO. This represents an increase from 2024's threshold of $121,372 per year ($58.35/hour).
All covered employers will be required to post the revised notice in all workplaces and job sites when the poster becomes available.
SFHCSO Website: Understanding the Health Care Security Ordinance
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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