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Baldwin Bulletin

Question of the month – July

The Baldwin Group
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Updated: September 20, 2024
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0 minute read

QUESTION:

 Is an applicable large employer required to offer health coverage to interns?

Answer:

According to the IRS (Rev. Rul. 76-417, 1976-2 C.B. 58), the definition of an intern is a professional learning experience that offers meaningful, practical work related to a student’s field of study or career interest. An internship gives a student the opportunity for career exploration and development, and to learn new skills. So “student” and “intern” are somewhat synonymous under the IRC.

Thus, under the IRC there are two classifications of an intern/student: 1) a student that is performing in a work-study program which is funded by the Federal Work Study program (or a substantially similar program of a State or political subdivision), or 2) a student that is employed on a part or full time basis (i.e. a student that does not perform in a Federal or State Work Study funded program). For classification #1, all hours worked are excluded from the definition of hour of service. For classification #2, the student is treated as any other part time or full time employee and all hours are counted/tested the same as a non-student employee.  


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