Beginning in 2014, the Patient Protection and Affordable Care Act of 2010 (“Obamacare”) will impose new health care coverage requirements, called “shared responsibility”, on certain large employers. A large employer is defined as an employer with at least 50 full-time, or ‘‘full-time equivalent” employees during the previous year.
Who is considered a full-time employee?
• A person who averages at least 30 hours of service per week.
• A person who averages at least 130 hours of service per calendar month.
• Two or more persons who are not full-time employees are aggregated to create “full-time equivalent” employees. Each multiple of 120 hours of service per month equals one full-time equivalent employee. Example: 20 persons each work 15 hours per week, which is 60 hours per month. The law views this as 10 full-time employees.
Is anyone else included?
All employees that are within an employer’s ‘‘controlled group” (companies with related ownership) are aggregated. Thus, two or more smaller entities under common control can be considered one entity with over
50 employees.
• Independent contractors can be considered employees for this purpose if subject to the will and control of the employer with regard to what work shall be done, when and how.

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