Healthcare Reform - Employee Calculations

Bracing for Impact:
What you need to know about health care reform

Q & A from Webinar Presentation
March 26, 2013

© 2013. All rights reserved. Rea & Associates, Inc .

Questions related to

Employee Calculations

-2- © 2013. All rights reserved. Rea & Associates, Inc .

If temporary agency employees work In the case of an individual with
only for the entity and the entity majority ownership in multiple
controls the schedule and the task, entities, is it most likely that the
will they have to be offered FTE's will be aggregated regardless
of entity type and structure?
insurance?

If the temp agency employs over 50 full- Yes.
time employees, and the employees you
are referring to are full-time common law
employees of the temp agency,
absolutely, they will need to be offered
coverage.
The temp agency can elect to pay one of
penalties if they do not “play.”


What about multiemployer collective
If you have a part-time employee bargaining agreements? We have
who is scheduled for 25 hours per six different multiemployer plans
week, but picks up extra hours and that provide health care. Do all these
goes over 30 hours, what happens to employees count for the large
the status of insurance? employer count?

If this is a regular occurrence, and they For the large employer count, look at who
are full-time after the measurement period the common law employer is. A
testing that applies to them, they will be common law employer/employee is a
full-time under ACA and will need to be very fact intensive area.
offered insurance.
Only employers whose businesses are
If you have proper measurement periods part of commonly controlled groups have
in place, an occasional 40 hour week or to aggregate employees.
130+ month will not be a problem. The
key there is you have to have the proper If you know which EIN is the common law
policies in place! employer of the workers, and you know
how those EINs are related, then you can
properly aggregate groups for Large
Employer testing.


Can you discuss Amish employees needs briefly?

Amish employees (but not employers) have a religious exemption from the requirement
to buy health care the same as they have in several other areas of the law. There are
existing rules on how this works in other areas which the ACA has adopted.
Employers should offer coverage and obtain a waiver from their Amish employees.
Amish employers should offer coverage to their employees, assuming they are large
employers under ACA.
Remember that it takes a full-time worker going to the exchange and buying coverage
with a subsidy to trigger the penalties – an Amish employee should not do that (unless
they really want health care coverage and are willing to risk the non-tax related
consequences I suppose).
Note: The religious exemption must be renewed by minors that come of age (18, I
believe). Employers should track this and obtain new waivers accordingly.


We are a trucking company and have
never needed to track hours because What happens during elections,
we do not fall under the FLSA. How when the Board of Elections hires
will they measure hours for a employees for approximately 1 and
trucker? 1/2 months, 10+ hours day?

By actual hours worked. If they are not If that’s all they are employed for, it’s
paid on an hourly basis (but by the job), probably not a problem. Remember, there
there are the 8 hours/day and 40 is a 90 day administrative waiting period
hours/week safe harbors. that you can build into your policies.
This might be a great time to talk to an You don’t have to provide, nor can you be
external company that has stand-alone penalized, for not providing coverage to
options for hour tracking that are proven anyone during their first 90 days.
and low cost.
If those workers will be employed more
The IRS is soliciting comments on how to than 90 days, so long as you have the
deal with folks that are obviously full-time proper measurement period established
(like pilots), but that have some and they are otherwise not hired to be
restrictions on their workday due to other full-time, you will be ok.
areas of the law. Truckers, I believe, have
similar rest period requirements.


If there are five restaurants under one common holding company with
more than 50 people combined, are they considered a large employer?
If yes, what if they were to each be their own separate company, would
it still apply?

In both situations, it sounds like we have common ownership. You would aggregate
the employees for purpose of Large Employer testing and it sounds like you would
be a large employer.
For penalty testing, they would each be considered on a separate company basis.


Are seasonals designed as 120 days We only have to be concerned about
or can they be defined differently if part-time/full-time if they exceed full-
stated as such by our organization? time over the entire measurement
period, correct?

Seasonal workers are 120 days For purposes of Large Employer
maximum, for now, no real flexibility. testing, you look at actual hours by
month – measurement periods do not
The IRS has solicited comments on other apply/are not applicable.
ways of providing a seasonal safe harbor.
For penalty testing, to see if someone is
full-time or not, you are correct that it is
over the whole measurement period.
Note: If you hire someone intending them
to be full-time, the measurement period
rubric doesn’t apply to them – they are
simply considered full-time.


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