Affordable Care Act (ACA) Employer Requirements
The employer mandate applies at 50 full-time employees, including full-time equivalents.
The rule
The IRS says two Affordable Care Act rules apply only to an applicable large employer: the employer shared responsibility provisions, and the information reporting provisions for offers of minimum essential coverage. An employer is an applicable large employer for the current year if it had at least 50 full-time employees, including full-time equivalents, on average during the prior year.
What employers must do
Count full-time employees (at least 30 hours of service a week, or 130 hours in the month) plus full-time equivalents. A full-time equivalent month is the hours of non-full-time employees, capped at 120 hours each, divided by 120. There is a seasonal-worker exception when the workforce exceeds 50 for 120 days or fewer and the extra employees are seasonal. An employee with military coverage such as Tricare is not counted toward the 50 for that month. A new employer uses a reasonable expectation of its workforce. Offering coverage to part-time employees is not required in order to avoid the shared-responsibility payment.
Effective dates
Status is measured each calendar year from the prior year. No change to the 50-employee threshold effective January 1, 2027 was on the IRS page.
What this means for BOSS partners and associates
BOSS is often the employer of record for the associate. Wage, break, leave, posting, and tax rules usually follow the state where the associate works. Tell BOSS that state before the assignment starts. Associates should record every hour worked on the timesheet. Do not promise a pay practice, a leave bank, or a posting the statute does not require.
Questions? Contact BOSS Support at support@backofficenow.com.
Sources
This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.