IRS Ruling on Determining Group Size

On Friday December 28, 2012 the IRS issued rules for determining group size for ACA compliance. The proposed regulations provide a comprehensive structure of rules that employers will need to follow to comply with the law

The rules will not go into effect until January 1, 2014. The entire 144 page text of the regulations may be viewed at www.irs.gov/pub/newsroom/reg-138006-12.pdf (Cut and paste into your browser if link is not active).  Please be aware though that calculating the group size will be based on 2013 employees, not 2014. 

In short what this means to you is that for the most if you have under 50 full-time equivalent employees working for you, you wont be subject to many of the penalties.  The big question is "what are 50 full time equivalent employees"?  For the purpose of insurance full time pertains to anyone working 30 or more hours per week. NOT 40 hours - 30 hours.  If you have seasonal or part-time workers than you need to be cautious and read the IRS regulations for the formulas.  Your insurance broker should be able to help you figure out how to calculate the part-time and seasonal employees.  But be aware that the burden falls on the employer. 

If you would like to get more information on this topic, please call us at (714)680-5900 or you can email us at angela@ansainsuranceservices.com .  As always, you can find us on the web at www.ansainsuranceservices.com .