State RegulationsNC specificDifficulty 2/5
Under G.S. 58-50-110, a North Carolina 'small employer' is one that, on at least 50% of its working days during the preceding calendar quarter, employed no more than how many eligible employees?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-50-110(22) and (10), a small employer is one that employed no more than 50 eligible employees on at least 50% of its working days during the preceding calendar quarter. An eligible employee is a full-time employee with a normal workweek of 30 or more hours, and since 2014 the definition applies to grandfathered group plans under North Carolina insurance law.
Why the other options are wrong
- A) 18 is the maximum months of group continuation coverage under G.S. 58-53-35, not the small-employer headcount.
- B) 55 is the number of scored questions on the North Carolina licensing examination, not an employee threshold.
- C) 30 is the minimum hours in an eligible employee's normal workweek, not the maximum number of eligible employees.
Memory hook
Small employer = 50 heads or fewer, half the quarter's working days.