Milestone 05

Approaching 50 employees

Fifty is a legal threshold, not just a number. Health coverage and leave rules change, and your HR setup needs to change with them.

Your growth path

Each step has a guide

Next step: Plan for 100 employees: EEO-1 reporting and other new rules

See the guide

What you need now

  • Track your full-time equivalent count. The ACA employer mandate applies to employers with 50 or more full-time employees, counting full-time equivalents.
  • Offer affordable coverage. Larger employers that don’t offer qualifying health coverage can owe penalties, and must file annual ACA reports.
  • Prepare for FMLA. Family and medical leave rules apply to private employers with 50 or more employees.
  • Revisit your setup. Compare staying with a PEO against HR software plus a benefits broker. Either can work at this size.
  • Write things down. A real employee handbook and basic manager training become important.

What can wait

  • A full HR department. One HR lead, supported by a PEO or HR software, is usually enough.
  • Enterprise HR suites. They’re built for much larger teams.

Coming next: At 100 employees, federal EEO-1 reporting begins and other rules, like WARN Act layoff notices, start to apply.

Guides and tools for this stage

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