Act mandating


04-May-2020 18:27

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Seasonal employees, contractors, volunteers, educational employees, services provided by student work-study programs, adjunct faculty, and business owners either don’t count toward the total or count toward the total differently.

For those who do count toward the total, employers should use a reasonable method of crediting hours of service that is consistent with section 4980H of the IRS tax code.

In theory, the increased buying power leads to better quality, more affordable plans.

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(2) Days-Worked Equivalency: An employer may use a days-worked equivalency whereby the employee is credited with 8 hours of service for each day that the employee would be required to be credited with at least one hour of service, including hours of paid leave.

For normal full-time and part-time employees, there are a few ways to count hours.

(1) Actual Hours Worked: An employer may determine actual hours of service from records of hours worked, and hours for which payment is made or due, including hours of paid leave.

If a small business has 25 or fewer full-time employees with less than ,000 per employee in average annual wages, they can apply for tax breaks of up to 50% (35% for non-profits) of their contribution to their employees’ premiums. Businesses must pay for at least 50 percent of their employees’ premiums and their worker’s average annual wages can’t be more than ,000 to qualify.

• Insurance must be purchased on the Affordable Insurance Exchange for at least two year to qualify for tax credits.

For example, if an employer uses the days-worked equivalency for an employee who works from a.m.–p.m.



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