Calculating Taxes under the Patient Protection and Affordable Care Act The PPACA imposes taxes on employers who choose not to provide health insurance benefits or who choose to offer highly expensive health insurance plans. Lets assume that a company has 500 workers. Calculate the costs of the following scenarios. Questions: 10-9. The company chooses not to provide health insurance. How much will the penalty be based on the formula presented in this chapter? 10-10. The company prices health insurance for its workforce, and determines that the annual cost is $2,500,000. Based on your answer to 10-9, how much money would it save by not offering health insurance? 10-11. The company is considering the purchase of a high-priced health insurance option. The cost is equal to $16,000 per employee for individual coverage and $30,000 per employee for family coverage. Half of the employees subscribe to individual coverage. Based on the guidelines presented in this chapter, calculate the Cadillac tax.