It is prime time of the year for hiring “interns.” With the Affordable Care Act’s “pay or play” rules scheduled to go into full swing next year for large companies (50+ employees), employers have to know how to treat interns.
The federal tax code imposes special taxes on large employers if their employees receive premium tax credits for the purchase of their own health coverage on one of the health care exchanges. We won’t repeat all the pay or play rules here but suffice it to say that avoiding the taxes hinges on offering group health coverage to “full-time employees.”
Regular, full-time employees (generally 30+hours/week/month) have to be offered coverage within 90 days of hire (with a possible one-month extra “orientation period”). Most other employees don’t have to be offered ACA-compliant coverage until after nearly a year and then only after the employer determines that the employee during that period averaged 30+ hours/week/month. This is under the “look back measurement period” of the ACA rules. So how does an intern fit into these rules?


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