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Navigating the ACA: Counting Hours of Service for Dual-Employed Individuals

If you're a business owner subject to the Affordable Care Act's employer shared responsibility provisions, you know the importance of accurately identifying full-time employees. But what happens when you have an employee who splits their time between your business and another unrelated venture? Let's dive into the intricacies of counting hours of service in such scenarios.



The Affordable Care Act (ACA) introduced the employer shared responsibility provisions, outlined in section 4980H of the Internal Revenue Code. This legislation is designed to ensure that applicable large employers provide affordable health insurance coverage to their full-time employees. Now, when it comes to identifying full-time employees, the situation gets a bit nuanced, especially if your employee is working for both your business and another unrelated one.

Counting Hours of Service: The Dual-Employment Dilemma

Let's say your employee wears multiple hats, contributing to the success of both your business and a completely unrelated venture. In such cases, where the employers are considered unrelated and not treated as a single entity under the ACA, the hours of service for one employer are not automatically counted as hours of service for the other.

This means that when calculating the total hours of service for your business, you are not required to include the hours an employee works for an entirely different company. Each employer is responsible for tracking and reporting the hours of service relevant to their specific operations and benefits offerings.

The ABCs of Compliance

Ensuring compliance with the ACA's employer shared responsibility provisions involves meticulous record-keeping and a clear understanding of how hours of service are attributed. For dual-employed individuals, the key is to distinguish between the responsibilities of each employer.

Consider implementing robust tracking systems to accurately capture hours worked for your business, and communicate transparently with employees about the importance of reporting their hours diligently, especially if they hold multiple positions.

In conclusion, while the ACA's provisions can be intricate, navigating the landscape of dual employment becomes more manageable when you understand the distinctions in counting hours of service. Stay informed, maintain meticulous records, and ensure compliance to keep your business on the right side of the ACA. After all, a well-informed employer is the cornerstone of a healthy and compliant workplace.

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