Hospitality and the Affordable Care Act (ACA)

MEC and MVP Strategies for ACA Compliance

WHO IS REQUIRED TO PROVIDE COVERAGE?

Generally, PPACA applies to employers with 50 or more full-time employees – those who average 30 or more hours per week. Employers are also required to provide so-called “minimum essential” and “affordable” coverage. Because of these general principles, many smaller employers aren’t paying attention to the laws because they have fewer than 50 full-time employees. However, there is more than one way to reach the 50-employee threshold.

Part-time employees are included in the 50-employee calculation as “partial employees” for determining whether the employer has 50 employees, so 50 employees really means 50 full-time equivalents (FTEs). For example, if a company has 25 full-time employees and 50 half-time employees, the company has 50 FTEs and will be subject to penalty if health care coverage isn’t provided. Given that many restaurants and hotels use part-time employees, the new laws may affect them.

In addition, some companies separately incorporate their restaurants and hotel properties for a variety of corporate and liability purposes. For purposes of the health care act in counting employees, IRS and ERISA controlled-group principles apply. Parent, brother and sister companies are counted as one. So, if two restaurants with 25 FTEs are separately incorporated but owned by the same company, person or other “controlled group,” those properties meet the 50-FTE employee threshold. Companies must carefully count the number of actual employees to see if the 50-FTE employee threshold is met.

As to the meaning of “minimum essential” and “affordable” coverage as defined under the Act, minimum means 60 percent of the actuarial value of the cost of the benefits. Affordable means the premium for the coverage paid by the individual employee can’t exceed 9.5 percent of the employee’s household income. Employers who meet the 50-FTE level will have to have very competent accountants to ensure the coverage offered meets the standards under these definitions.

ARCHER JORDAN can help with keeping you on track and out of the IRS’s radar.

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business

   
           
   

Categories

ACA
AD & D
Affordable Care Act
AHCA
AK Prevailing Wage
AL Prevailing Wage
AR Prevailing Wage
AZ Prevailing Wage
CA Prevailing Wag
CA Prevailing Wage
CA Prevailing Wage 401k
Call Centers
CO Prevailing Wage
COBRA
Compliance Tips
Critical Illness
CT Prevailing Wage
Davis Bacon Act
DE Prevailing Wage
Department of Labor
Disability Insurance
Education
Employee Benefits
Employee Training
Employer Tips
ERISA
Farm Labor Plan
Fixed Indemnity
FL Prevailing Wage
Fringe Benefits
GA Prevailing Wage
Government Contracting
Government Contractors
Health and Welfare Wrap
Healthcare Benefits
HI Prevailing Wage
Hospitality
Hospitality Benefits
Hourly Seasonal Workers
Hourly Workforce
Human Resources
ID Prevailing Wage
IL Prevailing Wage
IN Prevailing Wage
IO Prevailing Wage
IRS
KS Prevailing Wage
KY Prevailing Wage
LA Prevailing Wage
Limited Medical
MA Prevailing Wage
Major Medical Insurance
McNamara-O’Hara Act
MD Prevailing Wage
ME Prevailing Wage
MEC
MEC and MVP
MEC MVP
MI Prevailing Wage
MN Prevailing Wage
MO Prevailing Wage
MS Prevailing Wage
MT Prevailing Wage
MVP
NC Prevailing Wage
ND Prevailing Wage
NE Prevailing Wage
NH Prevailing Wage
NJ Prevailing Wage
NM Prevailing Wage
NSRMCA Members
NV Prevailing Wage
NY prevailing wage
OH Prevailing Wage
OK Prevailing Wage
OR Prevailing Wage
OSHA
PA Prevailing Wage
Part Time Employees
Podcast Guest Appearances
Prevailing Wage
Prevailing Wage Workers
Restaurant Group Benefits
Retirement Plans
RI Prevailing Wage
SC Prevailing Wage
SCA Audits
SCA Compliance
SD Prevailing Wage
SDVOB
SDVOSB
Seasonal Workers
Service Contract Act
Small Business
Staffing
State Prevailing Wage
SUB Plan
Supplemental Benefits
Supplemental Unemployment
Third Party Administrator
TN Prevailing Wage
Trust Services
TX prevailing wage
Uncategorized
UT Prevailing Wage
VA Prevailing Wage
Violations – SCA
Voluntary Benefits
WA Prevailing Wage
Wellness
WI Prevailing Wage
Workplace Health
Workplace Safety
WV Prevailing Wage
WY Prevailing Wage