We previously wrote about offering coverage to interns, and now as the January 31st Form 1094/1095 deadline rapidly approaches, clients have started asking a logical follow-up question:  ok, so I have to offer coverage if they work full-time and satisfy our waiting period, but do I have to report them as a full-time employee?    

It depends. If the intern does not complete your plan’s waiting period, you would not have to report them because an individual is not considered a “full-time employee” when in a limited non-assessment period (which is a fancy term for a waiting period that is 90 days or less). If the intern works past the waiting period, you will need to report the intern if the intern was working a full-time schedule. If the intern does not receive an offer of coverage, you have to report it as such and risk incurring a penalty under the ACA if the intern receives a subsidy from an Exchange plan during that month. For any intern you have to report, you indicate in Line 14 that they were in a “limited non-assessment period” (Code 2D) for the entire time the intern was in the waiting period. 

The ACA has certainly made managing interns messier than usual.