Determining Full-time Employees under the Health Care Act
In August of this year, the U.S. Departments of Labor, Treasury, and Health & Human Services issued new guidance to employers regarding their "shared responsibility" requirements under the Patient Protection and Affordable Care Act (the "ACA"), commonly known as "Obamacare." IRS Notice 2012-58 and IRS Notice 2012-59 are particularly important in terms of the assessments and choices employers must make in determining which employees are considered to be full-time employees under the ACA. While the guidance provided by these notices is not yet final because the Departments are still seeking public input, it is important for employers, especially those employing part-time and seasonal employees, to become familiar with the rules and choices so that they will be prepared for the expected implementation date of January 1, 2014.
Under the ACA, "large employers" are liable for "assessable payments" for full-time employees who are not covered by insurance, or are covered by insurance that does not meet minimum standards or is unaffordable. A large employer is defined as one that has 50 or more full-time-equivalent ("FTE") employees. If an employer is a large employer, and the employer provides no insurance coverage on or after January 1, 2014, the employer must make assessable payments in lieu of insurance.
For a complete analysis of the new requirements, please click to view the full article authored by Ancel Glink attorneys Don Anderson and Adam Simon.
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