the time of hire which specific category they fall under. “Seasonal”
means the position is filled around the same time each year and for
less than six months. The law vaguely refers to the employer having
a “reasonable belief ” that the variable employee will be working
under 30 hours per week. A designated position provides a stronger
defense later in the event of an audit or lawsuit.
In addition, companies must track the hours of “variable” and
“seasonal” employees. This type of documentation will support
that companies had a “reasonable belief ” and that those employees
are working fewer than 30 hours per week and don’t need to
be covered.
Full-time employees, on the other hand, must be covered. Any
employee who works a minimum of 30 hours per week is considered
full-time. Initially, just 70 per cent of eligible employees must
be covered. Although companies cannot exclude specific employees
by name, they can exclude certain categories of employees.
The legislation requires employers to offer coverage to the employee’s
children – including adult children up to age 26, whether
they are living in their parent’s home or not. However, plans are
not obligated to offer coverage to spouses.
Canadian employers should note that there is no exception under
the legislation for employees who are not U.S. citizens. If a
full-time employee is based in the U.S., that employee likely must
have access to health insurance.
40 years of providing top
corporations with customized
financial education through
seminars, individual financial
planning and online solutions.
Roland Chlwetelu, CFP, Consultant
Financial Education & Employer Services
Toronto
40 years of providing top
corporations with customized
financial education through
seminars, individual financial
planning and online solutions.
40 years of providing top
corporations with customized
financial education through
seminars, individual financial
planning and online solutions.
Va n c o u ve r • C a l g a r y • To ro n to • M o n t Karen To learn more about how T.E. Wealth is helping please visit www. tewealth.com/employers/
Hall, Vice President
Financial Education & Employer Services
Calgary
To learn more about how T.E. Wealth is helping employers,
please visit www. tewealth.com/employers/
Va n c o u ve r • C a l g a r y • To ro n to • M o n t re a l • S t . J o h n’s
Karen Hall, Vice President
Financial Education & Employer Services
Calgary
AFFORDABLE CARE
The law emphasizes providing affordable insurance for everyone.
In order to achieve this goal, the rules are about shifting some of
the expense of more universal coverage to employers.
Health insurance can cost $8,000 for an individual and up to
$19,000 for a family, and even higher in certain areas of the U.S.
However, there is a kind of “glitch” in the law. This glitch allows
companies to offer “skinny” plans that cover preventive care only.
These plans offer no coverage for hospitalization or drugs, among
other things, yet they still let an employer avoid the main health
reform penalty.
These kinds of plans can be much less expensive for employers,
and they are still legal today. However, companies must be careful.
Employees must be aware of what these plans do and do not cover
– and companies should be careful to retain proof that they’ve
provided the information.
The new law can be complicated, and getting the details right
can be a challenge. The main point is this: Canadian companies
with more than 100 full-time employees in the U.S. must provide
affordable care options to those employees. It is advisable to obtain
a legal opinion to ensure your company is compliant. A good legal
expert can be invaluable in helping you align your company with
U.S. health reform – both now and in the future. n
Sibyl Bogardus is chief compliance officer for Hub International.
benefits
54 ❚ FEBRUARY 2015 ❚ HR PROFESSIONAL