5 ms·

The employer requirement for health insurance is only for full-time employees. That scales down great. Two half-time employees should be much cheaper than one

• x0x0 7y ago
  And then I have an employee without health insurance. That's a hard no both ethically and because I don't want a sick employee.
  • tzs 7y ago
    Or you have an employee who buys their health insurance on your state's ACA exchange. There's even a decent chance that they can get an ACA subsidy. To get a subsidy they need to get their MAGI below about $49k (I'm assuming they are single...someone else can do the numbers for families). MAGI is for most people income - HSA contribution - retirement plan contribution. With an HSA and an IRA they can knock up to almost $10k off their MAGI, which means they can take a part time job paying up to $59k/year and still get a sweet ACA subsidy. If your company has a 401k, and they work enough hours to qualify to contribute to that (1000 hours/year, I believe), using that instead of an IRA would let them knock around $24k off MAGI, meaning they can take a part time job paying up to $72k/year and still get a subsidy. The way ACA subsidies work is that even if you barely come in under the MAGI limit, it is usually pretty substantial. You might expect that as you get closer to the limit, the subsidy decreases--and you would be right--but it isn't the kind of gradual decrease to 0 that you would probably expect. No, it is a slow decrease right up to the cutoff then it drops to $0.