How Employers Can Offer A Health Benefit To Their Part
Just because its not required to provide health insurance to your part-time staff doesnt mean you shouldnt do it. Hourly wages are always important, but part-time job seekers typically expect to be offered some fringe benefits before they accept a new job.
Luckily, there are cost-effective health benefit options for both your full- and part-time employees’ healthcare needs. Below are two healthcare benefits options for employers of all sizes that are rising in popularityhealth reimbursement arrangements and health stipends.
Are Part Time Employees Eligible For Health Insurance
If you hire part-time workers, do you have to offer them health insurance as an employer? What does the law require? What are the consequences for not offering coverage? Its tough to keep up with the complex changes in health care laws. But here are a few basics that can help you answer the question are part-time employees eligible for health insurance?
Advantages And Disadvantages Of Providing Health Insurance To Part
Offering health insurance benefits to employees is a great idea if a company is aiming to become increasingly attractive to employees. However, for most companies, this might be out of the question for the simple reason that offering health insurance benefits costs a lot. Health insurance premiums are expensive and they tend to go up each year. Given the increase in rates in addition to the already high cost, most companies might find it hard to offer it to part-time employees.
But before the idea to offer health insurance to part-time employees, it is worthwhile to look at some benefits of doing so.
Just as there are some pros to offering healthcare insurance to part-time employees, there are some cons for both the employees and employers as well.
- Employers are free to offer health insurance benefits to part-time employees, regardless of the hours they devote to their work. However, part-time employees who receive tax benefits from their employers may be disqualified from taking tax benefits or other savings in case they wish to buy coverage from the marketplace. This is also dependent on how much the employee earns and affordability.
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Disclaimer: Changes In Your Work Or Life Situation
The information on this page applies to departments and agencies served by the Pay Centre. If your department or agency is not served by the Pay Centre, contact your departmental compensation unit.
Please request additional guidance from your manager, departmental human resources and finance, as pay-related information and processes are subject to change.
Canada’s Universal Health System
When it comes to health benefits, the Government of Canada provides basic health coverage through it’s publicly-funded universal health care system. Coverage is for basic healthcare such as hospital and emergency room care, doctor visits, and various medical services like X-Rays or MRIs.
Provinces and territories administer and deliver health care services according to the Canada Health Act.
What Is The Difference Between Full
The main difference between a full-time and part-time weekly schedule is simply that part-time employees work fewer hours than full-time employees. Other than that stipulation, the Fair Labor Standards Act does not define nor differentiate between part-time and full-time employees. It is up to the employer to define these criteria. Employers should be mindful of other laws that may dictate what is considered part-time as well.
Are There Maximum Hours For Part
There are no set requirements for maximum part-time hours. As previously mentioned, the FLSA doesn’t have any parameters around maximum part-time hours. It’s the employer’s responsibility to outline what the maximum hours for a part-time worker would be, although the maximum number of hours should be less than those of a full-time employee.
What Is A Comparable Plan
- Defined Benefit PensionPlans an earnings-based DB registered pension planthat has an annual accrual rate of at least 0.5% of earnings willqualify as a Comparable Plan
- DC Registered Pension Plans a DC registered pension plan which has mandatorycontributions of at least 8% of base salary earnings will beconsidered a Comparable Plan if the employer funds at least 50% ofthe total minimum contribution. Neither employee voluntarycontributions, nor any related employer matching contributions,will be taken into account in determining Comparable Planstatus.
- Group RRSP/DPSP no,they will not qualify as Comparable Plans, regardless of thebenefit level.
- Flat-Benefit DB Plans Flat-Dollar DC Plans Hybrid DB/DC Plans theseregistered pension plans will qualify as a Comparable Plan if theymeet requirements prescribed by regulations .
- MEPPs certainmulti-employer registered pension plans will qualify where thebenefit level or contribution level matches those for DB or DCregistered pension plans
- PRPPs certain pooledregistered pension plans will qualify, however the details will beset out in regulations.
Who Is A Part
If you are wondering whether you can be considered a part-time employee or not, you can determine this by comparing the number of hours you work. Part-time employees work for fewer hours as compared to full-time employees, and according to the US Bureau of Labor Statistics, part-time employees work between one to 34 hours per week. The exact number of hours that employees work may vary depending on the field of business they are employed in.
Coffee & Bagel Brands
Available for all positions, depending on eligibility, Coffee & Bagel Brands offers competitive benefit packages to choose from, including medical, dental and vision. After working at any of the companys franchises for three months, employees age 21 and older have access to a 401 program, for which the company will match 25 cents for every dollar contributed. And, of course, each employee receives a discount at all company-owned locations.
What The Affordable Care Act Says
The Affordable Care Act , also known as “Obamacare,” mandates that employers offer group health insurance benefits to full time or the equivalent employees, and at least 95% of their workers, so this leaves things to their discretion for the remaining percentage. Additionally, state laws, eligibility for other types of benefits, industry norms, and even the salary paid to employees can have an impact on the degree to which employers are required to cover their employees health and wellness needs.
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How To Offer Benefits For Part
The best way to set up healthcare benefits for part-time workers is to create classes or hives. This will categorize employees into groups and each group would get separate types of coverage that the employer chooses to provide.
Hive division is completely at the discretion of the employer. For example, some employers might class their employees into hives based on seniority. Other employers might divide their workers by salary or job role. Each hive or class will have a different benefits package.
When dealing with full- and part-time workers, employers can simply divide their employees by this classification as well. For example, one may choose to have only an HSA plan available for part-time workers as opposed to a full coverage healthcare plan for more senior, full-time members.
Vacation And Sick Leave For Indeterminate And Term Employees
You will earn your vacation and sick leave credits for each month that you receive pay for at least twice the number of hours in your part-time workweek.
If you are a part-time employee working additional hours, you need to have a new assigned workweek established so that your vacation and sick credits for the applicable month can be calculated properly.
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How Many Hours Do You Need To Work To Qualify For Benefits
Under the Affordable Care Act, employers with 50 or more full-time equivalent employees are required to provide health insurance only to those who work 30 hours per week or 130 hours per month. They can choose to extend benefits to employees who work less than that, but states and insurance companies may have minimum hourly requirements of their own.
Advantages Of Offering Part
Employers with tight budgets might balk at the idea of spending more on something thats usually not required, but part-time employee benefits can have a solid return on investment. Those who offer them may be able to:
- Stand out from competitors in the market
- Recruit more talented individuals
- Retain valued employees and reduce turnover
- Improve engagement and productivity
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Are There Minimum Hours For Part
A minimum of 20 hours per week is common, although the United States Bureau of Labor Statistics’ Economic News Release describes part-time employees as individuals working one to 34 hours per week. Note that the Fair Labor Standards Act , the federal wage and hour law, doesn’t have definitions for part-time or full-time status.
What Is A Good High Paying Part
There are many high paying part-time jobs in different industries. For example, some part-time positions that pay well above the minimum wage include:
- Computer support/tech support specialists: The Bureau of Labor Statistics indicates that median wages are $26.33 per hour. If you have the knowledge, you can offer your services part time and command a high wage.
- Exercise trainers/fitness instructors: According to the bureau, the median hourly wage for trainers and instructors is $19.42. Again, you can often teach classes or arrange meetings with clients on your own schedule.
- Medical transcriptionists: The median average salary for this profession is $16.05 per hour according to the bureau and many people can do it from home.
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What Is A Part
A part-time employee is someone who works less hours than a full-time worker. This may seem incredibly basic, but thats because in the absence of any requirements from the Fair Labor Standards Act , employers are generally free to determine their own criteria for full- and part-time work. Therefore, its possible for an individual who works 35 hours per week to be considered part-time with one business and full-time with another.
Reasons To Offer Benefits To Your Part
As young people graduate from university and search for employment, one thing they tend to look for is a great benefits package. This is normally the case for all Canadians looking for employment. It is true for both full-time and part-time job seekers.
However, there are numerous reasons why employers should consider offering a benefits package for part-time staff. Outlined below are just five of the many reasons to consider Benecaid when looking to curate employee benefits plans and packages.
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Rules Set By Insurance Carriers
Checking with the insurance carrier is an essential step that employers need to complete before they can start offering health insurance to their employees.
- Similar to policies set by employers, insurance carriers also have policies that they have set up for offering health insurance benefits to part-time employees. Employers need to check these to make sure that there are no discrepancies.
- Just like some states, some insurance carriers may also have a minimum participation rule. The minimum participation rule states that out of all the employees who get the health insurance, a certain specified percentage of employees must also purchase and use the insurance. In case an employer chooses to offer health insurance to part-time staff, they need to understand that their participation rate may be affected. Employers must check with their part-time staff to make sure that they are okay with taking up this offer.
Do Employers Have To Offer Health Insurance To Part
Having employee benefits like health insurance isnt always guaranteed for part-time employees. According to the Bureau of Labor Statistics1, only 23% of employees with part-time jobs were offered employer-sponsored health insurance.
However, providing your part-time employees with a health plan may be worth your while. There are few regulations surrounding part-time work, so employers have flexibility when determining eligibility. And in return, youll be able to recruit more talented part-time employees.
This blog covers the requirements for offering health insurance to part-time employees and what health benefit options are available to employers.
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Rules Set By Affordable Care Act For Part
According to the Affordable Care Act , employers are liable to offer health insurance to their employees if they have at least 50 full-time equivalent employees working under them. According to this law, full-time work is defined as anyone who works for more than 30 hours per week. Additionally, an employer who chooses to offer health insurance benefits to part-time employees must comply with the following terms as well.
- Health insurance benefits must be offered to all the employees working for the same number of hours and working the same kind of role. Employers cannot pick and choose to offer health insurance benefits for one employee and not do the same for another employee.
- Employers must create a written policy stating the benefits they offer their part-time employees in this aspect. An example of this is Starbucks, as the company is known to offer great benefits for their part-time employees. They offer health insurance to part-time employees who have worked for around 240 hours in a period of three months. Similarly, UPS is known to offer similar benefits for both their part-time and full-time employees, regardless of how many hours they work per week. Companies need to set a policy for their employees and they need to make sure that the policy is applied consistently to all employees.
Should You Offer Benefits
If you are considering offering some amount of benefits to your part-time employees, it is important to understand what benefits you should be offering. As an employer, you should think through the following questions and select benefits that fit the criteria.
Considering the type of benefits that will most assist and interest your employees is crucial to employee and employer satisfaction. Offering something just to make yourself feel better wonât help the business if the employees donât care for what you offer. Make sure it aligns with their needs.
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Enrolling In State Health Benefits Program
Employees must to log into Benefitsolver by accessing a link on the MyNewJersey portal to make changes to medical, prescription, and dental plans.
Employees can directly access the BenefitSolver site by going to:
First time users must register by the following these instructions:
- Enter SSN and Date of Birth
- Enter Company Key: SHBP/SEHBP
Please see below for additional information and support:
- In order to access the system, you will need to create a MyNewJersey portal account
- If you have trouble creating an account and/or accessing the MyNewJersey portal, contact New Jersey OIT support at
- If you have problems with Benefitsolver, please utilize the support service within the application
- If you have any other questions or concerns, please contact OneSource Rutgers Faculty and Staff Service Center at 732-745-SERV or
Lowes Employee Relief Fund
To help associates undergoing significant personal hardship, the Lowe’s Employee Relief Fund , funded by the generous contributions of our associates, allows for our team members to help each other in times of need. All associate contributions are matched by Lowe’s, making each dollar that much more impactful. In 2020, LERF provided almost $3 million to associates and their families.
While not limited to these events, LERF funding may be provided when an associate experiences an unforeseen hardship, such as:
- Major home or personal property damage caused by a house fire or natural disaster
- Death of associate or associates immediate family member to assist with funeral costs
- Other demonstrated hardships, including medical expenses
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Time Doesnt Mean Less Than 40 Hours A Week
The Affordable Care Act requires that private sector employers with more than fifty Full-Time Equivalent employees must offer health insurance to those workers or pay a tax penalty. They must offer this coverage to workers who put in at least thirty hours a week on the clock. Its not just those who work forty or more hours. Part-time workers who work less than 30 hours/week are not included. So, there is no tax penalty at this time for excluding them from a workplace health benefits plan. That said, there are still steps an employer can take to attract and retain good quality part-time talent by making it easier to get health coverage.
What Is Considered Part
Business owners typically consider full-time employment as someone who works 40 or more hours each week. Part-time employees usually work an average of 30 or fewer hours per week, or less than 130 hours per month for more than 120 days in a row.
Other than that basic criteria, the Fair Labor Standards Act and other employment laws dont outline specific requirements. Generally, individual businesses determine what they consider to be part-time hours.
Employers should also consider any state and local laws that may stipulate what is considered part-time work. It’s the employer’s responsibility to choose the maximum hours for a part-time worker and communicate that to their employees in writing during the hiring process.
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Requirements To Offer Employee Benefits
The Affordable Care Act is the leading authority on how to provide benefits to part-time employees at your workplace. According to the ACA, if benefits are offered to some part-time employees, the same benefits must be offered to all part-time employees that perform work similar to those to whom insurance is already offered.
If you already offer a benefits package to any full-time workers, itâs important you make sure that your insurance supplier is able to provide benefits to part-time employees in the first place. That is if you can afford to offer the same types of benefits to your part-time workers. If this isnât possible then youâll want to consider what other affordable options might be possible.
To cover all bases and to avoid liability issues, it is wise to document what requirements the company has set for part-time employees to qualify for benefits. As an employer, you would often be less likely to offer benefits to a part-time employee who works one hour per week than an employee who works 20 hours a week or more. A workplace manual is a good place to list the requirements for benefits and you have to make sure that youâre
In some cases, benefits must be offered to a certain percentage of employees in order for the plan to continue to be valid. This is referred to as Minimum Participation Requirements and are most common when benefits are given through a formal insurance provider.