Play or Pay Penalty and Counting Employees

Determining how many employees you have is important for several purposes under the Affordable Care Act (ACA). ACA provides that an employer that has 50 or more full-time employees or full-time employee equivalents (a “large employer”) must provide health coverage, or pay one of two penalties. If you think you are exempt, make sure you are counting your employees correctly so you are not surprised with penalties. Learn the basics about:

  • The definitions of full time employees
  • How to count part-time employees on a pro-rata basis
  • How to treat seasonal employees
  • Who the law considers an "employee"
  • Counting hours correctly
  • Determining average hours worked
  • Penalties that result if a "large employer" doesn't offer coverage