Health Care Reform – 3 Points that you have to address by 1/1/15
- Defining the “Seasonal Employee” under Health Care Reform
There has been a lot of information and still a lot of misinformation concerning what is, and what isn’t a part-time or seasonal employee. Many business owners, and quite frankly many brokers and industry reps, are still mystified by the definition and scope of how this definition is used under the ACA. The “120 day” rule has been erroneously morphed into a coverage issue, and that is simply not the case.
- Determining Large Employer Status
As per usual, the federal government has made the calculation for finding out how big your company is considered by them a long and exhaustive process. Many companies whom last year found they were an over 50 employee company quit counting at 51 as it was to be applied to all companies larger than that on 1/1/15. The administration then changed their minds and made the 1/1/15 deadline only applicable to companies with over 100 employees. The deadline for 50 plus is now 1/1/16. If you are over 50, then you need to finish the calculation and find out if you are over 100 using the “full-time equivalent” calculation so that you can be compliant on 1/1/15. You must define seasonal employees and part-time employees before you can start your determination calculation.
- Pre-preparing for IRS auditor
The IRS will be conducting your ACA Compliance audit, and there are many pitfalls beyond the two mentioned above that may make you non-compliant. The biggest one will be confirming coverage of your full-time employees. Because of the individual mandate that went into effect on 1/1/14, some of these employees have already secured coverage through California Care, and some (a lot) of them are receiving subsidies. If you are determined to be a large employer of any sort, with employees that are not placed onto your employer offered health care plan and are still receiving federal subsidy, then it is a $3,000 per employee fine (sent as a tax bill). Non-enrolling an eligible employee will cost you $2,000 per effected employee.
At VanBeurden, we have taken the time to sit down with both current clients and prospects alike, to make sure that this shoe fits our clients and will not fall off when it runs the obstacle course that will surely be erected for audit and compliance. It would prove valuable to your firm to sit down with a VanBeurden benefits consultant and allow us to introduce the latest and most innovative plan designs that limit cost and maximize value.
Van Beurden has a long history of guiding our clients through the Workers Compensation and Employee benefits market to find the product they desire at the price they can afford. Give us an opportunity to prove out the positive outcomes that we have brought to existing clients.
If you would like to speak with someone to help guide you through this process, feel free to contact me at email@example.com or call me direct at (559) 634-7136
Guy Teafatiller – PWCA