Do I need to offer healthcare benefits to my interns?

It depends on the size of your company, and specifics of the internship. Below is a guide to determining which benefits, if any, you need to provide your interns: ACA The Affordable Care Act (ACA) requires employers with 50 or more employees to provide healthcare benefits for covered employees, which are defined as employees working […]

2018 HSA contribution limit

It depends on the size of your company, and specifics of the internship. Below is a guide to determining which benefits, if any, you need to provide your interns:

ACA

The Affordable Care Act (ACA) requires employers with 50 or more employees to provide healthcare benefits for covered employees, which are defined as employees working at least 30 hours per week over a given period of time.

However, the ACA doesn’t specifically mention interns in relation to this rule.

Interns May Be Considered Covered Employees

If a paid intern works more than 30 hours per week, they may be considered an eligible employee whom the company must cover.

Exceptions may include:

  • Interns employed by a company for less than 120 days

  • Interns who have worked less than 30 hours a week on average for the last 12 months. Employers may use the look back rules, which averages number of hours worked over the last 12 months

Interns That Aren’t Considered Covered Employees

  • If an intern works fewer than 30 hours per week, they don’t have to be covered. Employers may choose to cover part-time interns at their discretion. However, any policy put in place for an intern should apply equally to all interns

  • Companies aren’t required to cover unpaid interns, even those working more than 30 hours a week

  • Interns participating in federal work-study programs are also likely to be exempt from coverage requirements

Final Tip

You should consult legal counsel to understand how these guidelines might apply to their interns.

Helpful Links:

Healthcare Coverage Under the Affordable Care Act – NaceWeb.org – Clarifies ACA healthcare stipulations and then relates them to interns.

Are Your Summer Interns ACA-Eligible – SHRM.org

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