Determining Benefits Eligibility for Seasonal Workers under the ACA

What Benefits are Seasonal Workers Entitled to?

Benefits administration under the Affordable Care Act, or ACA, is a challenging task for any company, from small businesses to large enterprises. Determining who is eligible and for what amount is a complex process. Adding seasonal workers and hourly workers to the process, and not just dealing with full-time employees, can increase the complexity of the process further.

One of the key concerns is whether or not seasonal workers can qualify for group employment benefits, such as those in the more affordable group medical coverage plans. With an effort in understanding and with the right team behind you, your company can navigate the different rules and regulations behind benefits regulation under the ACA.

How to Determine Benefits Eligibility for Seasonal Workers

Here is a rundown of the key points involved in determining benefits eligibility for seasonal workers.

1.    Most laws on seasonal workers and the ACA apply to “large” companies.

Before you start reading through the entirety of the ACA, note that majority of the laws which govern over medical coverage for seasonal workers only apply to certain types of employers. Specifically, these stipulations only apply to “large” employers, as defined under the rules of the IRS.

In general, this would mean companies employing 50 or more people. The ACA defines “full-time” employees as those whose total work hours equate to 30 or more hours per week.

2.    There is a difference between full-time “regular” workers and full-time “seasonal” workers.

Establishing an employee’s status given the ACA definitions involves reviewing how long they are expected to work in the company. Full-time seasonal employees are those who work 30 or more hours per week, and are expected to work at their position for a maximum of six months only.

If their actual period of employment lasts longer than the six months, they would still be called seasonal employees if the expectation of employment was less. This might occur when there is an unusually long winter season, which would extend the employment of someone who works at a ski resort, for example. But if their employment lasts longer than eight months, then they become eligible for medical coverage under the ACA.

You need not worry about offering them a healthcare plan if they would be employed for no more than six months.

3.    Eligibility for medical coverage depends on their employee status and amount of hours worked.

Once your “seasonal” employees end up employed for up to or longer than eight months, they are then considered “regular” employees. Determining eligibility is now based on the aggregate amount of hours worked, rather than the amount of hours worked in a week.

This means that an employee working 180 hours over a month would be eligible for medical coverage, even if they work less than 30 hours on any particular week within that period.

Consult with ARCHER JORDAN to Know More about Benefits Eligibility

Compliance with the ACA is a must for any business. Though the process is complex and can be intimidating at first, all you need is the right team of benefits and insurance specialists with you.

ARCHER JORDAN is a third-party benefits administrator that has decades of experience in dealing with regulations and fringe benefits provision. Contact us today!

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