A store's headcount never sits still.
- A year-round core plus a seasonal wave every fall
- Associates who may waive for a parent's or spouse's plan
- Managers on salary, associates paid hourly
- More than one store, sometimes in different rating areas
- Very little time off the floor to explain choices
A local shop might run on a few full-time keyholders and a rotating bench of part-time associates, then add holiday help on top. Hours follow foot traffic. Some associates are students, some are covered through a parent or spouse, and some work a second job.
That mix raises three questions that get blurred: whether you're a large employer under the ACA, who is eligible for your plan, and what each person pays. Answer them in that order.
Three settings that shape a retail plan.
Run the size test with the holidays in it.
Seasonal staff count, and an exception may apply.
Each month, add full-time employees to FTEs: part-time hours, capped at 120 per person, divided by 120. Average the twelve months of the prior calendar year. The FTE calculator checks your numbers.
Illustrative: a home goods store averages 46 full-time employees and FTEs from January through October, then reaches 75 in November and December. The year averages (46 × 10 + 75 × 2) ÷ 12 = 50.8. But the workforce was over 50 for 120 days or fewer, and the extra people were seasonal workers, so the store isn't treated as a large employer. Have payroll or your tax adviser confirm.
Set eligibility hours and the waiting period on purpose.
Two settings decide who gets the plan, and when.
A waiting period can't exceed 90 days, and the maximum isn't automatically right for a store. A shorter wait helps you recruit keyholders and assistant managers. A longer one keeps short-tenure hires from cycling on and off the plan. For a large employer, a new hire expected to work full-time, and not seasonal, is assessed month by month.
Fund the associate, price the family.
The contribution split is your biggest cost dial.
One workable design funds a set share of employee-only coverage and leaves dependent premiums to the employee, which keeps the company's cost readable as headcount moves. Show family premiums on their own line. A second plan design lets associates trade premium for deductible, as our guide to one plan or two explains. Confirm the carrier's contribution and participation terms before you commit.
Plan in summer, decide in fall, enroll after the rush.
Summer: pull the numbers.
Last year's monthly hours, a current census and your renewal or plan summary, gathered before back-to-school and holiday staffing.
Early fall: quote side by side.
Group medical from Premera Blue Cross, Regence BlueShield, Asuris Northwest Health, Kaiser Permanente and UnitedHealthcare, level-funded plans where underwriting allows, and allowance models, all on the same census.
By November 1: make the association call.
In AWB HealthChoice, medical plan changes happen only at the December 1 renewal, and cancelling takes 30 days' notice. A December 1 move means notice by about November 1, before holiday hiring takes over.
November and December: flag seasonal hires.
Mark seasonal workers in payroll as you hire them. Their hours feed next year's count, and the seasonal-worker exception depends on knowing who they were.
January to March: count, then enroll.
Confirm your ACA status from last year's monthly totals. If your plan year starts after the holidays, hold enrollment meetings once returns slow down.
Where AWB HealthChoice fits.
Retail and wholesale are among the eligible industries for AWB HealthChoice, which offers medical, vision and life as a package and renews every December 1. Employers buying through an association aren't small employers for rating purposes, so the plan isn't subject to Washington's small-group rating rules (RCW 48.21.047). The fair test is a quote on the same census beside small-group and level-funded options. Our association plan comparison shows how.
We're an appointed AWB HealthChoice producer, so we can quote it for eligible members, but we aren't owned by or endorsed by the Association of Washington Business.
Two mistakes that surface at renewal.
Counting people instead of hours
Ten part-timers aren't ten full-time employees, and they aren't zero either. Their hours become FTEs, and FTEs can tip a store into the large-employer rules.
Letting the holidays pick your plan year
A December effective date puts plan summaries next to your busiest weeks. If you're setting up or moving a group plan, a date after the holidays gives people time to read.
What shop owners ask us.
Do holiday hires have to be offered our health plan?
Under 50 full-time employees plus FTEs, federal law doesn't require an offer, Washington adds no employer mandate, and your plan's eligibility rules decide. For an applicable large employer, a new seasonal hire can be measured over an initial period of 3 to 12 months, so someone who works only the holiday weeks won't complete it.
Could we give employees an allowance instead of a group plan?
If you aren't an applicable large employer and offer no group health plan, a QSEHRA can reimburse individual coverage up to $6,450 self-only or $13,100 family for 2026. Stand-alone group dental, vision and health FSAs count as group health plans here, so a QSEHRA has to stand alone. Part-time and seasonal staff can be left out, and notice is due at least 90 days before the year. Run the employee cost test first.
How do we explain benefits to associates who can't leave the floor?
Keep group sessions short and repeat them on different days, post a one-page summary in the break room, and offer live virtual sessions or one-on-one calls for evening and weekend staff. Education is at no extra fee for client teams, and enrollment runs through Employee Navigator. See employee education.
Where these rules come from.
IRS guidance on applicable large employers, including the seasonal-worker exception, and identifying full-time employees. The Department of Labor on the 90-day waiting period limit. HealthCare.gov on QSEHRAs. General information, not legal or tax advice.
Get quoted before seasonal hiring starts.
Send a census, last year's monthly hours and your current plan or renewal. We'll return the employer-size math, side-by-side quotes and a calendar built around your peak. No obligation.