Employee Definition in the HCR Law

[Full Throttle]

Question for the guru's on the new health care law. How is the 50 employees requirement defined?

Full Time Equivalent?
Just 50 Employees on the Payroll?

I have a group with 40 full time equivalent employees, but over 100 on the payroll total with many only working a few hours a month. We are trying to figure out if they will be subjected to the penalty if they do not offer a group plan and instead, just send the employees to the state exchange with an HRA reimbursment since most are $10 to $15/hour employees.

Also, does anyone know if there is a minimum hour requirement an employee must work where the employer has to provide coverage vs. paying the penalty for that employee?

 

[ABC]

I think the pt employees hours are added to form full time status. You group with 100 employees will have a hard time not qualifying as a 50 life case.


I am sure someone on here has IRS code or DOL links they can post addressing these calculations.

 

[leevena]

Formula is simple and must be done on a monthly basis.

Number of FT employees (30+ hours a week in that month)+ All hours worked by PT employees that month divided by 120 hours=Equal number of full-time equivalents.

So an example would be; 40 full time and 60 who had a combined total hours worked of 960 (16 hours each that month). 40+ (960/120=8) total employees is 48.

Hope this helps.

 

[stuy119]

Lee, how does that work for businesses (landscaping, etc.) that meet the FTE amount for 8 months of the year? Do they then have a choice to make the other 4 months of the year?

 

[leevena]

As of now, the counting is done a monthly basis. My guess is that companies who want to stay below the number 50 will figure out how to hire and schedule people so to stay below.

 

[JosephDeacon]

I have an additional question. In 2014, will the number of FTE's be based on 2013 numbers or 2014 numbers?

We have employer groups who are asking, and we are simply not sure.

 

[leevena]

I have an additional question. In 2014, will the number of FTE's be based on 2013 numbers or 2014 numbers?

We have employer groups who are asking, and we are simply not sure.

See my July 20th post, it is done based on the month.

 

[HealthGuy]

Don't you just love Obamacare's poopie diapers. Unintended consequences. Its like eating a full bean burrito and expecting not to shiat yourself. PPACA is full of beans, let the shiatting begin with your small groups ! The government is soiling up the market and let them clean up the mess. I'm not going to lift a wet wipe to clean up Obamacare's mess. Not one finger. Let it stink up the market and enjoy the chaos.