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Own company - want to hire my wife as 2nd employee for Full-time benefits

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  • Own company - want to hire my wife as 2nd employee for Full-time benefits

    Any citations would be appreciated:

    I am currently the sole owner and sole employee of my own incorporated company.

    I am told by a health insurance carrier that they could sell me a group plan via my company so long as I meet the minimum criteria which includes the requirement that my company has at least 2 full-time employees.

    If I were to hire my wife as a full-time employee and pay her a full-time salary but arrange with her so that she chooses how many hours she wants to work and set her own schedule, is there anything in the law which prohibits me from continuing to pay her a full-time salary, offer her full-time benefits (i.e. the health plan), and present her as being a legitimate full-time employee? If it is required that she log a minimum number of hours per week, is there a limit to the amount of 'paid time off' that she is allowed to have and use? She'd probably only realistically contribute a handful of hours per week while things ramp up - it may take awhile before she could say she's really worked 30 or even 40 hours in 1 week on the business.
    Last edited by TomCat1116; 03-19-2009, 01:05 PM.

  • #2
    There may be a requirement that the employee must work a certain number of hours per week to be eligible. Our plan requires 30 hours per week for example.
    I find that the harder I work, the more luck I seem to have.
    Thomas Jefferson

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    • #3
      If I were to hire my wife as a full-time employee and pay her a full-time salary but arrange with her so that she chooses how many hours she wants to work and set her own schedule, is there anything in the law which prohibits me from continuing to pay her a full-time salary, offer her full-time benefits (i.e. the health plan), and present her as being a legitimate full-time employee? You can pay her $250,000 a year and never have her set foot in the office if you wish to. However the insurance carrier will almost certainly require that eligible employees [to be covered under the Plan] regularly work a minimum of "X" hours per week (usually 30.) If she doesn't, then you will be defrauding the insurance carrier and there could be some significant repercussions when/if they uncover that.

      If it is required that she log a minimum number of hours per week, is there a limit to the amount of 'paid time off' that she is allowed to have and use? Not under any State or federal laws but again, the group health contract will almost certainly require that a number of hours are "regularly" worked in order to be eligible for participation.

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      • #4
        To me, you are looking for a way to defraud the insurance company. It sounds like you want to hire your wife, schedule her for 30-40 hours a week but give her unlimited vacation so she will be on the books but not have to work.

        Sorry, I am not willing to assist you in this endeavor.
        I find that the harder I work, the more luck I seem to have.
        Thomas Jefferson

        Comment

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