![]() What are the next steps if you have full-time employees? To comply with the ACA if you have full-time employees, follow these steps: Next Steps If You Have Full-Time Employees In this calculation of full-time equivalent employees, an employer does not need to include seasonal workers or employees with health coverage under a VA health program or TRICARE. The employer uses this total to decide whether they meet the ACA-mandated employee threshold of 50 full-time employees. Once a company determines how many full-time equivalent employees it employs, they must combine that number with the number of full-time employees. Employers with more than 50 full-time employees must comply with ACA requirements.Įven if an employer has fewer than 50 full-time employees, they may still need to comply with ACA requirements, because the Affordable Care Act also includes full-time equivalent employees.Īn employer must consider the number of hours worked by part-time employees each month to calculate how many full-time employees they would need to work those same hours. Under the Affordable Care Act, full-time employees work an average of either 30 hours or more in a week or 130 hours during the month. An hour of service also includes every hour the employee gets paid or is entitled to payment for paid time off, such as for vacation, a leave of absence, jury duty, incapacity, illness or military duty.Įmployers can use the monthly measurement method or the look-back measurement method to identify full-time employees. ![]() The IRS defines an hour of service as every hour for which an employee performs duties for the employer and either gets paid or is entitled to payment for the work. How many hours are full-time for health insurance purposes? The IRS definition of a full-time employee is an employee who works, on average, a minimum of 30 hours per week in a calendar month or completes 130 hours of service per month. How can you determine if your employees are full-time? What do you need to do to be ACA-compliant if your employees are full-time workers? First, we need to look at the full-time employee definition. To navigate ACA compliance, you will need to understand what workers qualify as full-time, in addition to seasonal employment laws and ACA temporary employees’ benefits. As of 2017, individuals do not have to have insurance, but requirements for employers with more than 50 full-time or full-time equivalent employees still stand. For this reason, a company must determine exactly how many workers it employs. An employer that fails to provide their employees with affordable health insurance coverage must pay a penalty. The Affordable Care Act requires companies that staff more than 50 full-time employees to provide their employees with health insurance. Navigating ACA Compliance With Employee Working Hours We have developed this guideline to ACA compliance for full-time, part-time and temporary employees to help you understand the definitions of different employees and navigate ACA compliance. If you have employees working a variety of hours, how can you ensure your business is ACA-compliant? Many companies offer temporary and part-time employees lower-tiered benefits, if any. Since the enactment of the Affordable Care Act, questions and debates have arisen about the impact of this law on third-party staffing arrangements. Navigating reporting with multiple different types of employee working hours can be quite challenging.
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