STARS Act introduced again in Congress

From SAF:

Legislation to clarify the definition of seasonal employment under the Affordable Care Act (ACA) was introduced February 11 in the House of Representatives.

Identical to legislation spearheaded by SAF last year, the "Simplifying Technical Aspects Regarding Seasonality (STARS) Act," H.R. 863, was introduced by Reps. Jim Renacci (R-OH) and Kurt Schrader (D-OR).

Leading a coalition of various seasonal industries, SAF worked with a bipartisan group of members of Congress last year and this year to introduce the STARS Act. The Act provides relief to seasonal employers in the floral and other industries who have been struggling to understand and comply with the Affordable Care Act (ACA).

Although last year the legislation attracted a great deal of support, the 113th Congress recessed prior to taking action on the measure.

Recognizing that corrections to the ACA were needed to reflect the realities of the modern workforce, the STARS Act would define "seasonal employee" as a worker who is employed on a seasonal basis for six months or less during a calendar year, consistent with Department of Treasury regulations. The act also would simplify the methods for seasonal employers to determine business size and ultimately whether the business and seasonal employees are subject to required offers of coverage under the ACA's employer mandate.

Under current law, different definitions of seasonal, with different lengths of service, are used to determine whether a business is large or small under the ACA. The result has been confusing and often incorrect compliance information that puts seasonal employers at risk for potential tax liabilities.

Left unchanged, the law would create greater confusion and costs for seasonal employers attempting to properly comply with the ACA. The STARS Act seeks to align definitions of what constitutes a seasonal worker consistent with Treasury Department regulations and to provide clarity so employers can understand and comply with the law.

Learn more at www.saf.org.