What is part-time & full-time under new health care reform
June 18, 2010
What does health care mean for small business? by Vickie Grinder
Health Care Reform will have a major impact on all small business and large business effective 2014. The biggest concern among businesses seems to be if they are considered a small or large business which is the determining factor in employer health care for their employees. First let’s examine the employer mandate: the requirement that certain employers either provide an affordable package of essential health coverage to all full time works or pay a per-employee penalty. What mandates full-time? Large employers are defined under the health-care law as those with fifty or more full-time-equivalent employees. A small employer is a business with fewer than fifty full-time-equivalents is exempt from the law’s health coverage requirements and penalties. Full-time is anyone averaging at least thirty hours per week in any given month. Part-time is defined as a person who averages fewer than thirty hours a week in any given month. Employers are not required to provide health care coverage or pay penalties for part-time employees. Beginning January 1st, 2011, employers will be required to disclose the value of health benefits provided by the employer for each employee’s health insurance coverage on the annual W-2 form -this mandate for all businesses. Check with your accountant or visit irs.gov for more information on stipulations for your business.
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