Large Group Health Insurance

A large group is a group of 50 or more employees working more than 30 hours a week. Definition of a seasonal employee is an employee scheduled for fewer than 120 days per year.

Employees and Dependents

A dependent means a child who is under age 26 . It does not include spouse.

Failure to allow an employee to enroll a dependent under 26 year of age has the same effect as not offering coverage at all.

I Have Seasonal Employees. Am I Large or Small?

Employers that “on average “ has at least 50 full-time employees on a business days during prior calendar year is considered a large employer.

The average is calculated based on Full Time Equivalent (FTE) for each month:

  • Full-time employee (FT) = 130 hours of service for month
  • Full-time equivalents (FTE) – Total hours for month of non FT employees/120
  • Sum of FT + FTE for each month +12

For Example:
In a given year, an employer have 35 full-time employees and many non-full-time employees who worked 1260 hours. 1260 divided by 120 = 10.5 Full time employees for January + 35 full time employees = 45.5 for January. Repeat for each month add all 12 months and divide by 12.  If the sum of all the full-time employees = 50 or more they are a large employer.

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