2021 HCSO Annual Reporting Form Due May 2, 2022

After a two-year reprieve, the Office of Labor Standards Enforcement (OLSE) has announced the annual San Francisco Health Care Security Ordinance (HCSO) reporting requirement is back in effect. Since the traditional April 30th due date falls on a Saturday, the deadline to complete the reporting shifts to the following Monday, May 2.

The annual reporting form is now available on the HCSO website along with instructions and a webinar.

For more information on the HCSO generally, see our 2022 Newfront San Francisco Health Care Security Ordinance (HCSO) Guide.

Where can You Find Information on the Reporting?

Below are links to the necessary information.

• 2021 Employer Annual Form

• PDF Preview of 2021 Annual Reporting Form

• Instructions to complete the Annual Reporting form

• Recorded Webinar: HCSO Annual Reporting Form

The penalty for failure to submit the form is $500 for each quarter that the violation occurs.

What Information do You Need to Complete the Form?

• San Francisco Business Account Number

• Total number of employees in each quarter (nationwide)

• Number of employees covered by the HCSO in each quarter (SF only)

• Total number of HCSO covered employees enrolled in the company’s medical/dental/vision plan in each quarter

• Total amount of employer-share of medical/dental/vision plan premium paid for all HCSO covered employees (and dependents) in each quarter

• Quarterly city option contributions (number of employees and amount spent)

• Quarterly employer HSA contributions for HCSO covered employees (number of employees and amount contributed)

• Fair Chance Ordinance reporting (related to hiring and employment process for individuals with arrest and conviction records)

Quarterly Expenditures are Also Due by May 2, 2022

Under the HCSO, Covered Employers with 20 or more employees (50 or more employees for nonprofits) in any quarter are required to make a minimum level of health care expenditures for that quarter for any employees:

• Who have been employed by the employer for at least 90 days

• Who have performed at least 8 hours of work in San Francisco

• And who do not meet any of the exemption criteria

For full details, see:

• The SF HCSO and Employees Who Waive the Health Plan

• SF HCSO City Option Contributions

Don’t Forget about Remote Employees Working in San Francisco

With COVID-19, many employees are still working from home. Employers are not required to make expenditures for any employees who work outside of the geographic boundaries of San Francisco. However, employers still are required to make health care expenditures for any remote employees who work from home in San Francisco.

• For full details, see: SF HCSO Compliance in the Work-From-Home Era.

HCSO Covered Employer

You are a covered employer and are required to make health care expenditures if you met the following three conditions in the calendar quarter:

• Employed one or more workers within the geographic boundaries of the City and County of San Francisco;

• Were required to obtain a valid San Francisco business registration certificate pursuant to Article 12 of the Business and Tax Regulations Code, and

• Employed 20 or more persons worldwide (for profit) or a nonprofit organization that employed 50 or more persons worldwide

Employees who are Exempt or Excluded from Eligibility under the HCSO

There are five categories of exempt employees:

1. Employees who sign a waiver form and voluntarily waive their right to have employers make Health Care Expenditures for their benefit.

2. Employees who qualify as Managers, supervisors or confidential employees AND earn more than the applicable salary exemption amount.

3. Employees who are covered by Medicare or Tricare.

4. Employees who are employed by a non-profit corporation as a trainee in a bona fide training program.

5. Employees who receive health care benefits pursuant to the San Francisco Health Care Accountability Ordinance (HCAO)

A Reminder About the Waiver Form

The Employee Voluntary Waiver Form permits employees to voluntarily waive their right to employer health care expenditures under the HCSO. Employers must use the exact form and may not change the form in any way nor require the employee to sign the form. More details on valid employee voluntary waivers can be found on the HCSO Website.

For more information on all of the HSCO requirements, check out the SF OLSE’s official HSCO website.

For more information, see our 2022 Newfront San FranciscoHealth Care Security Ordinance (HCSO) Guide.

Disclaimer: The intent of this analysis is to provide the recipient with general information regarding the status of, and/or potential concerns related to, the recipient’s current employee benefits issues. This analysis does not necessarily fully address the recipient’s specific issue, and it should not be construed as, nor is it intended to provide, legal advice. Furthermore, this message does not establish an attorney-client relationship. Questions regarding specific issues should be addressed to the person(s) who provide legal advice to the recipient regarding employee benefits issues (e.g., the recipient’s general counsel or an attorney hired by the recipient who specializes in employee benefits law).