As a business employer, there are several parts of the Affordable Care Act (ACA) that may affect your business and your group plan. Beginning in 2014, business owners with 50 full-time workers or full-time equivalents (FTEs), are considered a large group employer. As a business owner, the act requires you to offer affordable health insurance coverage to all of your full-time workers, as well as their dependent children, or be subject to penalties.

Am I a ‘large group’ or ‘small group’ employer?
If you are a business that employs at least 50 full-time employees or 50 full-time equivalents during the prior calendar year, you are subject to the play or pay penalties and the employer-shared responsibility provisions.

There is a one-time special six-month transition rule, which applies only for 2014, which allows you to use any consecutive six -month period in 2013 rather than using the full previous twelve months to determine whether you are a large employer.

What is a full-time employee or equivalent?
A common law employee who averages at least 30 hours per week or 130 hours in a calendar month is considered a full-time employee. You must calculate your hourly worker’s service hours based on hours worked and hours of earned paid leave.

If you are a California business in the Redlands or Inland Empire, and have questions about health reform legislation, and how it will affect your large group plan, contact the experts at Bernardini & Donovan Insurance Services.

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