IRS issues notice on full-time employee determination and guidance on waiting periods
Posted on September 4, 2012 | No Comments
Last week, the Internal Revenue Service (IRS) issued a notice regarding safe harbor methods that employers may use to determine which employees will be considered as full-time employees for purposes of the shared employer responsibility provisions under the Internal Revenue Code, as added by the Affordable Care Act (ACA). The guidance expands on the previous guidance by including a safe harbor method that may apply to newly-hired employees. The notice provides employers with the option to use a look-back measurement period of up to 12 months to determine whether new employees are full-time employees, without being subject to a payment for this period with respect to those employees.
Also last week, the IRS, Department of Health & Human Services (HHS), and Department of Labor (DOL) issued a notice regarding the 90-day waiting period limitation in Public Health Service Act (PHS Act). The PHS Act provides that, for plan years beginning on or after January 1, 2014, a plan or issuer offering group health insurance coverage shall not apply any waiting period that exceeds 90 days.