Counting Employees Under PPACA
As you likely know, the “employer mandate” section of the Affordable Care Act requires companies with 50 or more employees to either provide adequate and affordable coverage to their workers or pay tax penalties. But just how are those 50 to be counted?
United Benefit Advisors has developed a guide to help employers determine how many employees they have for several purposes under the Patient Protection and Affordable Care Act (PPACA). Those who think they are exempt need to make sure they are counting employees correctly so they are not surprised with penalties.
The guide offers:
The definitions of full time employees
How to count part-time employees on a pro-rata basis
How to treat seasonal employees
Who the law considers an "employee"
Counting hours correctly
Determining average hours worked
Penalties that result if a "large employer" doesn't offer coverage
Applying the requirement to offer coverage
Paying the penalty
Eligibility for the Small Business Health Options Program (SHOP)