The document discusses rules for determining employee status and employer reporting requirements under the Affordable Care Act (ACA) in 2016. It states that a full-time employee is reasonably expected to work 30 or more hours per week on average, while a part-time employee works less. It also notes that the pay or play relief for employers with 50-99 full-time equivalents expires as of January 1, 2016, so all employers with 50 or more full-time equivalents must now offer minimum essential health coverage. Finally, it outlines reporting requirements for applicable large employers under Code Section 6056 and for non-applicable large employers with self-insured plans under Code Section 6055.

1. ACA in 2016:
Building on the Foundation
Full-time employee is reasonably expected to work an
average of at least 30 hours of service per week.
Part-time employee is reasonably expected to work an
average of less than 30 hours of service per week.
New employee is variable hour ONLY if it can’t be
determined at time of hire that employee is reasonably
expected to work at least 30 hours per week.
Employers likely to use
- Look-back method for hourly employees
- Monthly method for salaried employees
Effective January 1, 2016, pay or play relief for companies
with 50-99 full-time equivalents (FTEs) expires. Now all
employers with 50 or more FTEs are required to offer
minimum essential health care coverage, or face fines
from the IRS.
To determine 2016 ALE status, you can use as little as a
six-month consecutive period in 2015.
Non-ALEs with self-insured plans must report on all covered
employees to comply with Code Section 6055.
- This reporting will help enforce the Individual Mandate.
ALEs report all offers of coverage to employee, spouse
and dependents under Code Section 6056.
- This reporting will help enforce the Employer Mandate.
Reporting not required
- HSAs
- Wellness programs
- Dental/vision
- On-site medical clinics
ACA EMPLOYMENT STATUS
IRS REPORTING
copyright 2016