The “A” definition (the state definition) of a small employer has been eliminated. Beginning January 1, 2017, we will only see the federal definition which was the “B” definition. Under the federal definition, a small employer means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least 1 but not more than 50 employees on business days during the preceding calendar year and who employs at least 1 employee on the first day of the plan year.