The Tax Equity and Fiscal Responsibly Act

An Employer must comply with TEFRA regulations once they reach the 20 or more threshold. The "20 or more employees" threshold is met when an employer has 20 or more full-time and/or part-time employees for each working day in each of 20 or more calender weeks in the current calender year or the preceding calendar year. The 20 calender weeks do not have to be consecutive. The requirements are based on the number of employees, not the number of individuals covered under the medical plan.

What Are requirements for TEFRA?

• Requires 20 or more full-tine and part-time employees
• Must cover full-time employess age 65+ on employer sponsered group plan

What is the definition of a Non-TEFRA Group

• An employer group with less than 20 full-time and part-time employees combined