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Time to Begin Counting Hours for Variable Hour Employees

January 15, 2014

Posted By: Ben Cohen SBAM Approved Partner Kushner & Company

With the delay of the Employer Mandate in PPACA until January 1, 2015, many employers set aside their plans to track the hours of their variable hour employees.  It is time to pull that back to the top of the pile as we enter 2014. 

As a refresher, beginning with the first day of the plan year on or after January 1, 2015, Health Care Reform, or PPACA, requires employers with 50 or more Full Time Equivalents (FTEs) to offer “affordable” “essential health coverage “to full time employees who work 30 or more hours per week. For employees who are “regularly scheduled” to work 30 or more hours per week, the determination to offer coverage is pretty straightforward. For current employees who work “variable hours”, or new employees whose expected hours per week are unknown or variable, the calculation becomes a bit more complicated.

In the Kushner & Company article, Health Care Reform’s New Measurement, Administrative, and Stability Periods Design, we provided guidance on tracking the hours of variable hour employees.  Now is the time to begin your planning for 2015!

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