The Internal Revenue Service (IRS) is trying to prevent employers from getting around the new "play or pay" health benefits rules by reclassifying full-time workers as something else.
The IRS talk about methods for classifying specific types of workers, such as teachers, airline pilots and rehired workers, in the preamble to draft regulations for implementing the "shared responsibility" parts of the Patient Protection and Affordable Care Act (PPACA).
PPACA calls for employers with more than 50 full-time equivalent employees to provide a minimum level of health benefits for year-round employees who work more than 30 hours per week. Workers who do not offer the minimum level of coverage, or fail to ensure that the coverage meets affordability requirements, are supposed to pay penalties. PPACA added a section to the Internal Revenue Code (IRC), IRC Section 4980H, that governs how the IRS is supposed to go about applying the shared responsibility penalty provisions.
Comments on the proposed regulations are due March 18.