All employers covered by San Francisco’s Health Care Security Ordinance and/or the Fair Chance Ordinance are required to submit a 2022 Employer Annual Reporting Form by May 1, 2023.
The Health Care Security Ordinance (“HCSO”) applies to employers who have employees who work, either in person or remotely, within the geographic boundaries of San Francisco, and who have 20 or more workers worldwide (or, if a non-profit, then 50 workers worldwide). Employees are not covered by the HCSO during their first 90 days of work and need not be counted for the purposes of the 2022 Employer Annual Reporting Form. Employees who are eligible for or enrolled in Medicare or TRICARE are not covered under the HCSO. Managerial, supervisory, or confidential employees who also earned at least $109,643 per year are also not covered by the HCSO.
The Fair Chance Ordinance (“FCO”) applies to employers with 5 or more employees worldwide who perform services within the geographic bounds of San Francisco, along with all San Francisco City contractors.
If either of the above apply to your business, you are required to submit the 2022 Employer Annual Reporting Form. Failure to submit this report may result in a $500 penalty per quarter imposed by the City against your business.
EXEMPT EMPLOYERS
San Francisco does not require every employer to submit a report. Employers with fewer than 5 persons (including those employed outside of San Francisco) in each of the four calendar quarters of 2022 (defined as a 13-week calendar quarter), and who do not have a contract with the City and County of San Francisco, do not need to submit a report. Additionally, employers who had no employees working within the geographic bounds of San Francisco (including employees working from home in San Francisco) in any quarter of 2022 are not required to submit a report.
REQUIRED INFORMATION
An employer will need the following information in order to complete their 2022 Employer Annual Reporting Form:
Business Account Number: This is a seven-digit number obtained from the San Francisco Treasurer and Tax Collector. If you do not already have this number, you can register online at the following website to receive your business account number: https://sftreasurer.org/business/register-business.
Employee Information: Employers will need to provide the total number of persons performing work for compensation for each quarter, including those outside of San Francisco. Employers will need to report this in specified ranges (i.e., 0-4, 5-19, 20-49, 50-99, 100+). This includes all workers who performed work for compensation, whether full time or part time, seasonal or temporary, contracted or commissioned, etc. Owners who also performed work for compensation should be included.
Employers will also need to prove the number of employees covered by the HCSO for each quarter.
Employees who worked for an employer throughout the year should be counted in each quarter. If the number of people who performed work during a quarter changes during the quarter, San Francisco requires that employers provide an average number of workers for the quarter.
Health Care Expenditures: Employers will need to report on the total health care expenditures made for each quarter of 2022, including total payments for health insurance (medical, dental, and vision, as well as Taft-Hartley plan contributions), total contributions to the San Francisco City Option (San Francisco Covered MRAs, Healthy San Francisco and SF MRAs), and total spending on other irrevocable health care expenditures, such as employer contributions to Health Savings Accounts. Finally, employers will need to report on surcharges collected from customers to cover, in whole or in part, the cost of complying with the HCSO.
FCO Information: Employers must also provide information regarding compliance with the FCO, including how arrest and conviction history information was used in the employer’s hiring practices. Employers will need to note whether they ask about arrest or conviction information on their job applications. The information required by this section includes all full time, part time, temporary, and seasonal employees.
If you need to submit a 2022 Employer Annual Reporting Form, it can be submitted at the following link: https://sf.gov/submit-employer-annual-reporting-form-olse-0
Ferber Law is available to help you navigate these reporting requirements for the City and County of San Francisco. We look forward to assisting you.
