State RegulationsOH specificDifficulty 3/5
An employer averaged 12 eligible employees on business days during the preceding calendar year, but only 1 eligible employee was on its payroll on the first day of the new plan year. Under ORC 3924.01, the employer:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3924.01 contains two cumulative conditions: the preceding calendar year must show an average of at least 2 but no more than 50 eligible employees on business days, and the employer must have at least 2 eligible employees on the first day of the plan year. This employer satisfies the 12-employee average but fails the first-day minimum of 2, so it is not a small employer for that plan year.
Why the other options are wrong
- A) The preceding-year average is not the only test; ORC 3924.01 adds the first-day condition.
- B) ORC 3924.01 expressly requires at least 2 eligible employees on the first day of the plan year.
- C) The employer is not permanently excluded — it qualifies whenever it meets both the average test and the first-day test.
Memory hook
Two gates: 2 to 50 average last year AND 2 on day one — miss one, fail both.