Questions continue to pour in about how to work with the mechanics of the Health Care Reform. We list a few here that might help guide your group health plan administration:
How would several 10-15 hour per week employees be defined?
For purposes of determining large employer status, an employer would aggregate part-time employee and then divide by 30 to determine the number of full-time equivalents. Part-time employee hours are used to determine the full-time equivalent for purposes of determining of an employer is "large," but the employer does not have to pay a penalty for part-time employees.
Once an employer drops a plan and pays the penalty, are employers able to reinstate a plan in future years, or are plans no longer an option once the employer has paid the penalty?
The employer would be able to start a new plan. Once the employer offers qualifying health coverage, the penalties would cease.
When is the non-discrimination clause effective?
Health Care Reform initially required compliance with the nondiscrimination rules for insured plans for plan years beginning on or after September 23, 2010. However, IRS Notice 2011-1 provides that employers can postpone compliance until the agencies have issued regulations or other guidance regarding the rules.
Will the employees need to enroll their dependents to avoid the penalty when they file their taxes?
Dependents will be required to have coverage, although the coverage does not have to be through the employer’s plan.
More Q&A's on health care reform from the law firm of Constangy, Brooks & Smith, LLP. See my previous post for part one.