Effective January
1, 2015 the Affordable Care Act (ACA) imposes a penalty on large employers that do
not offer minimum health insurance coverage to all full-time employees and their
dependents.
So, how do you
determine who is a full-time employee? A full-time employee is an employee who was employed on average at least
30 hours of service per week.
To determine an
employee’s hours of service, an employer must count:
- Each hour for which the employee is paid, or entitled to
payment, for the performance of duties for the employer; and
- Each hour for which an employee is paid, or entitled to
payment, by the employer on account of a period of time during which no
duties are performed due to vacation, holiday, illness, jury duty,
military leave or leave of absence.
Alliance Benefit
Group North Central States, Inc. offers reports that are designed to calculate the number of full-time
equivalent employees to help employers be in compliance with the ACA. This calculation is based on employee status,
pay frequency and hours pulled from payroll for a selected period of time.
The Affordable
Care Act does not require businesses to provide health benefits to their
workers, but larger employers face penalties if they don’t make affordable
coverage available. Enforcement of
these penalties will begin in 2015, so if you would like to start receiving
these reports or would like to learn more about them, please contact your Payroll Administrator.
The Author: Joan Wichmann
Payroll Manager
JWichmann@abg-mn.com
Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.
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