Notify and Offer
Tell employees found full-time that coverage is available for the stability period, and complete enrollment before January 1. Employees found not full-time need a status you can document.
The three things to know.
Offer Timing
The offer must be made so that coverage can start at the beginning of the stability period.
Documented Status
For each employee found not full-time, keep the hours report that supports the result.
Dependents
The offer for full-time employees must also reach dependent children.
Sources: 26 CFR § 54.4980H-3. General information, not legal advice.
A worked example.
A November Notice
An employer sends notices on November 10 telling 32 employees found full-time that coverage starts January 1, with open enrollment through December 12.
What the Rule Produces
Everyone has a month to choose, and anyone who declines signs a waiver. The offer is documented for each employee, including their dependents.
Four steps to apply it.
1. Draft the notice
Explain status, coverage and deadlines.
2. Send it
Use email and mail where needed.
3. Collect elections
Track enrollments and waivers.
4. Follow up
Chase anyone who has not answered.
Where it goes wrong. Sending notices without tracking who has responded.
The questions that come up next.
What if someone misses the deadline?
Offer a path in the plan terms. Late enrollment can create a gap in the offer.
Do we notify people found not full-time?
Not for the mandate. Your plan terms may require notice of eligibility determinations.
Can enrollment be electronic?
Yes. Many employers use their benefits platform.
Do we have to notify part-time employees?
Not for the mandate. Plan terms decide.
Can notices be electronic?
Yes, if the delivery method works for each employee.
Plan-specific questions belong with ERISA counsel, and we will bring them in.
Related pages on the look-back method.
Test Anyone Still in an Initial Period
Hires from the last year may be partway through an initial measurement period and due their first standard test.
Keep the Evidence
Keep the hours report, the status list and the notices.
The Full Look-Back Guide
Every rule, example and source behind this page, in one place.
Talk it through with someone who runs this every year.
We help you choose the design, document it and reconcile the hours before the numbers reach your reporting.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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