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Counting Employees Isn’t as Easy as You Think

Sharp differences in federal laws require and direct employers to count and report their same base of employees in different ways...
June 21, 2016

Sharp differences in federal laws require and direct employers to count and report their same base of employees in different ways.  Both the number and nature of differences in federal law in this area are increasing.  It has further increased complexity and added to employer confusion in maintaining compliance in this area.

A recent article in Employee Benefits News discussed the major federal laws and their differences that apply to almost all employers in one way or another.  EBN provided an excellent matrix summary, which is attached for use by PIA members, for employers’ quick reference.

How This Affects Agencies: Whether a PIA agency is involved in employer-provided-benefits or not, requiring employers to provide an employee count is common across most commercial insurance coverages.  Many times, different coverages ask for the count in different ways,

in part, because different laws require the information to be gathered differently. The summary is a valuable tool for PIA agencies to use in their conversations with their employer customers.

The matrix format makes it easier for employers to understand what is being asked, why, and how to count. It also provides a format that agencies may wish to continue to fill in with any further differences found in agencies’/employers’ state laws that may also apply (e.g., state law sets number of employees to determine large from small/medium employers), as well as what insurers ask for employee count for the purposes of their various insurance coverages.