Counting Employees under the Affordable Care Act’s Pay-or-Play Provisions

Counting Employees under the Affordable Care Act’s Pay-or-Play Provisions from Setnor Byer Insurance & Risk

By: Setnor Byer Insurance & Risk  08/13/2014
Keywords: Insurance, Health Insurance, Health Coverage

Employers subject to the Affordable Care Act’s Employer Shared Responsibility provisions may be assessed a penalty if they do not offer affordable health coverage that provides a minimum level of coverage to their full-time employees and their dependents. Whether an employer is subject to these pay-or-play provisions depends on the number of people it employs. When counting employees, however, there are specific rules that must be followed. An employer is generally considered an “Applicable Large Employer” subject to the pay-or-play provisions if it employed an average of at least 50 full-time employees, including full-time equivalent employees (FTEs), on business days during the preceding calendar year. To determine whether an employer is considered an Applicable Large Employer for a calendar year: 1) Add the total number of full-time employees for each calendar month in the preceding calendar year, and the total number of Full Time Equivalent employees for each calendar month in the preceding calendar year. 2) Divide the sum by 12. 3) If the result is not a whole number, round it down to the next lowest whole number If the result of this calculation is less than 50, the employer is not considered an Applicable Large Employer for the current calendar year. If the result is 50 or more, the employer is an Applicable Large Employer for the current calendar year. [Note that transition relief was provided to qualifying employers with an average of 50-99 full-time and full-time equivalent employees on business days during 2014, so that they will not be assessed a penalty in 2015.] The first step to counting employees is identifying full-time and full-time equivalent employees. A full-time employee, with respect to a calendar month, is an employee who works an average of at least 30 hours per week, or 130 hours in a calendar month. A full-time equivalent employee isn’t an actual person. Rather, it’s a term used to describe the combination of all non-full-time employees who are counted as the equivalent of a full-time employee. For the full article please visit: http://setnorbyer.com/riskbriefs/post/Counting-Employees-under-the-Affordable-Care-Acte28099s-Pay-or-Play-Provisions.aspx#post0

Keywords: Affordable Care Act, Group Health, Health Coverage, Health Insurance, Insurance

Contact Setnor Byer Insurance & Risk

Email

Print this page

Other news and updates from Setnor Byer Insurance & Risk

Did You Get the Text About Distracted Driving Awareness Month? from Setnor Byer Insurance & Risk thumbnail
04/07/2016

Did You Get the Text About Distracted Driving Awareness Month?

Did you know that April is National Distracted Driving Awareness Month? If not, it’s time to take notice. According to


Supreme Court Requests Compromise Options in ACA Contraception Case from Setnor Byer Insurance & Risk thumbnail
03/31/2016

Supreme Court Requests Compromise Options in ACA Contraception Case

All SCOTUS is able to give is a request for compromise.


Does Your Business Need a USDOT or MC Number? from Setnor Byer Insurance & Risk thumbnail
03/18/2016

Does Your Business Need a USDOT or MC Number?

You may need commercial auto insurance, if you drive for any form of compensation.


Is Telemdicine Right for Your Business? from Setnor Byer Insurance & Risk thumbnail
02/29/2016

Is Telemdicine Right for Your Business?

Industry experts estimate that 80% of employers will offer telemedicine by 2018. So what exactly is this trending health care


10 Ways to save on your Auto Insurance from Setnor Byer Insurance & Risk thumbnail
02/18/2016

10 Ways to save on your Auto Insurance

If you want to save money (and c'mon, who doesn't want that), check out our post on Auto Savings!



Automatic Deadline Extensions Now Available for Affordable Care Act Information Reports from Setnor Byer Insurance & Risk thumbnail
10/15/2015

Automatic Deadline Extensions Now Available for Affordable Care Act Information Reports

For the first time, all applicable large employers must comply with the Affordable Care Act’s annual healthcare reporting requirements. Employers that averaged at least 50 full-time or full-time equivalent employees in 2014 must report specific 2015 healthcare information to the Internal Revenue Service. Reports for calendar year 2015 are due in early 2016, so time is running out. Or is it?


Are You Protecting Customers’ Credit and Debit Card Data? from Setnor Byer Insurance & Risk thumbnail
12/17/2014

Are You Protecting Customers’ Credit and Debit Card Data?

To reduce the chances of making the list in 2015, preventative measures must be taken by every business that accepts credit and debit card payments.


Understanding Excepted Benefits Under the Affordable Care Act from Setnor Byer Insurance & Risk thumbnail
12/10/2014

Understanding Excepted Benefits Under the Affordable Care Act

Though some of these benefits, like pre-paid legal service plans, are clearly not health-related, others may provide employees with some health-related benefits.


Steps To take After a Car Accident from Setnor Byer Insurance & Risk thumbnail
12/04/2014

Steps To take After a Car Accident

According to the Insurance Information Institute, drivers should take the following steps immediately after an accident:


Office Holiday Parties: Revel without Regret from Setnor Byer Insurance & Risk thumbnail
11/20/2014

Office Holiday Parties: Revel without Regret

Though holiday parties can create a positive work environment, increase employee morale and promote teamwork, they can also expose employers to a number of potentially significant risks.


Protecting Against Emerging Data Security Threats from Setnor Byer Insurance & Risk thumbnail
11/05/2014

Protecting Against Emerging Data Security Threats

With breaches becoming more common and more expensive, businesses are now discovering that steps must be taken to protect against data security breaches.


How Can Safety Reduce Workers’ Compensation Insurance Premiums? from Setnor Byer Insurance & Risk thumbnail
10/15/2014

How Can Safety Reduce Workers’ Compensation Insurance Premiums?

Workers’ compensation insurance provides indemnity and medical benefits to employees injured on the job.


A New Right of Access for Condominium Associations from Setnor Byer Insurance & Risk thumbnail
10/09/2014

A New Right of Access for Condominium Associations

Sometimes a condominium association needs to enter an owner’s unit, which is why Florida’s Condominium Act gives associations an irrevocable right of access.


OSHA Issues New Reporting and Recordkeeping Rules from Setnor Byer Insurance & Risk thumbnail
10/02/2014

OSHA Issues New Reporting and Recordkeeping Rules

Employers will soon have new rules to follow after experiencing workplace injuries and illnesses.