If large employers do not offer affordable, minimum value coverage to all “full-time employees” they can be penalized beginning in 2015.  A full-time employee (“FTE”) is an employee under the common law standard who works on average at least 30 hours per week, determined monthly.  Under the common law standard, an employment relationship exists when the person for whom the services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work, but also as to the details and means by which that result is accomplished.  Under this standard, an employment relationship exists if an employee is subject to the will and control of the employer not only as to what shall be done, but how it shall be done.  Any label that the employer imposes on an individual is irrelevant.  

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Interns as FTEs for Employer Penalty-082714R

 

If you have any further questions please contact your Total Benefit Solutions account manager at (215)355-2121.