Health Care Coverage and Seasonal Workers

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Employers face a number of issues when it comes to seasonal workers. The most predominant issue is whether employers are required to provide them with health care coverage in relation to the mandates of the Affordable Care Act (ACA). 

Over the next few weeks we will look at three of the top questions that employers have regarding seasonal employees.

The first question we will address is:

If a company’s seasonal employees in 2014 result in a company status for 2015 as an Applicable Large Employer (ALE), does the company have to offer health care coverage to all full-time employees in 2015?

Answer:

Companies classified as ALEs must offer all full-time employees and their children health care coverage according to the Affordable Care Act (ACA). If a company employed an average of 100 or more employees, including full-time equivalents, during 2014, under special transitional rules, for 2015 that employer is considered an ALE.  To determine its status an employer can use any six consecutive calendar months during 2014.

Not subject to the employer mandate in 2015, is an organization that is considered a small employer during 2014. To be classified as a small employer the company would have had to employ more than 50 employees but less than 100 employees and also meet certain additional conditions. Employers can exclude seasonal employees from the calculation by managing their work schedules. If a seasonal employee works 120 or fewer days during all of 2014 they are not counted towards determining the status (large or small) of an employer in 2015.

Next time we will discuss seasonal employees who work full-time for a limited number of weeks.

If you are a current Paypro Client, your dedicated Benefits Specialist is available to answer your questions and guide you. To learn how Paypro can ensure your organization is meeting the compliance requirements and to help you stay on top of these additional requirements please contact us or watch our recorded webinar “What All Employers Need to Know About the Employer Mandate for 2015/2016“.