Aftermarket Insider Issue 83 - (Page 3)

insurance understanding indUSTRy nEwS Affordable Care Act: Determination of Full-Time Employees B Y A n I TA B Ak E R , C PA , C lI FTo n lA R So nAll E n llP period from three to 12 months. The Patient Protection and If an employee is full-time during Affordable Care Act (ACA) contains the measurement period, then the a number of provisions that are employer must offer health coverage dependent on the number of full-time during the subsequent stability period, employees at a company. The number which is the greater of six months or of full-time employees and full-time the measurement period, to all fullequivalents (FTEs) determines whether time employees to avoid penalties. or not the employer is a “large” employer (50 or more FTEs) and • New Full-Time Employees (excluding subject to the shared responsibility seasonal workers): If it is reasonably provisions. Large employers must offer expected that an employee will insurance to full-time employees or they average at least 30 hours per week, could be subject to a penalty beginning then an employer would need to offer in 2015. The employer mandate and health coverage within the 90-day penalties were originally effective Jan. waiting period to avoid penalties. 1, 2014; however, the Internal Revenue • New Variable-Hour and Seasonal Service (IRS) announced on July 2, Employees: If an employer cannot 2013, that these rules would be delayed make a reasonable determination at for one year. However, it is still critical the start date of whether an employee to understand how full-time employees will average at least 30 hours per are determined under ACA. week, then the employee falls into this category. Similar to ongoing A full-time employee is an individual employees, the employer will set an averaging at least 30 hours of service initial measurement period that per week or 130 hours of service per would determine full-time month. For many employees, this can status for the subsequent be a simple determination. However, stability period. for employees who fluctuate in hours or are only employed seasonally, the determination is more involved. To handle these types of situations, current IRS guidance provides a safe harbor look-back method that an employer can use since the determination of full-time employees on a month-to-month basis would be difficult. The following categories of employees and methods may be used to determine who is a full-time employee: With questions, please contact Anita Baker, CliftonLarsonAllen, at anita. baker@CLAconnect.com, or call 602-604-3563. Their employee benefit group can provide assistance to larger employers who need help identifying which components of their health plans are subject to this fee, or determining the best method to assess the annual number of lives covered. As a member benefit, AAIA will be presenting a series of webinars on this topic, beginning on Sept. 18. For more information, contact Susan Medick, AAIA, at susan.medick@aftermarket. org, or call 301-654-6664. Anita F. Baker, CPA, CEBS is a partner with CliftonLarsonAllen LLP, a national accounting and consulting firm with 90 offices across the country. Based in Arizona, Baker leads the firm’s employee benefit plan practice group. CliftonLarsonAllen is the second-largest auditor of employee benefit plans in the U.S. and provides services to over 2500 plan sponsors. When using the lookback method, employers may elect to add an administrative period up to 90 days between the measurement period and the stability period. It will be important to measure full-time employees in 2014 to avoid the ACA penalties in 2015. • Ongoing Employees: Employers may set a standard measurement AFTERMARKET INSIDER | VOLUME 83 | 3 http://www.aftermarket.org/healthcare

Table of Contents for the Digital Edition of Aftermarket Insider Issue 83

Health Care Help:industry News
Millennials:The Aftermarket Generation
Talking Telematics:INSIDE TECHNOLOGY
Dress for Success
Workplace Wear:TOOLBOX
Conflict Minerals
Facts and Feedback:MARKET INTELLIGENCE
Words from a Winner:HEAD OF THE CLASS

Aftermarket Insider Issue 83