Veterans with Government Health Insurance Don't Count for Determining Large Employer Status

September 30, 2015|Terri Lillesand

Under the Highway Trust Fund Extension Law passed in August 2015, veterans covered by TRICARE or VA health care aren't counted when determining if an employer exceeds the 50 full-time and full-time equivalent employee threshold. The new law is retroactively effective for months beginning after Dec. 31, 2013.

As a reminder, the entire prior calendar year is used to determine if, for the current year, an employer is a large employer. A special rule exists for 2015 that any consecutive six months in 2014 can be used to determine large employer status. Because the new law is retroactive, it impacts 2014 which may help some employers stay out of large employer status.

If you have any further questions, contact Terri Lillesand at or 800-236-2248.

Terri Lillesand, CPA, tax shareholder, is leader of Schenck’s Health Care Reform Act Advisory team. She provides tax compliance and planning for corporate, individual, partnership, non-profit and fiduciary taxpayers.