At fifty full-time equivalent employees the ACA employer mandate applies.
For many agencies the count includes more people than the full-time roster suggests, because part-time hours are converted into equivalents.
Reaching fifty is a reporting and offer decision.
What Is Actually True
An employer with fifty or more full-time employees, including full-time equivalents, is an applicable large employer. Part-time caregivers add to the equivalent count through their monthly hours.
Applicable large employers must offer affordable minimum value coverage to full-time employees or risk penalties, and must file annual reporting with the IRS.
What We Do About It
We run the count with your actual payroll hours so you know where you stand and how close the line is, before a filing season surprises you.
If you are approaching fifty, we plan the offer, the affordability test and the reporting in advance. This is general information and your tax advisor should confirm the application to your facts.
How we handle it.
Run The Count
We convert part-time hours into equivalents and compare the result with the fifty-employee line.
Plan The Offer
If the mandate applies or is coming, we design an offer that meets the requirements and fits the budget.
Prepare Reporting
Forms 1094-C and 1095-C depend on clean hours and offer data, so we line up the data sources early.
Questions on this topic.
Short answers for agency owners.
How are full-time equivalents counted?
Monthly hours of service for part-time employees are totaled and divided by 120 to produce equivalents that are added to the full-time count.
What if we are just under fifty?
Growth can move you over quickly. Planning ahead avoids a rushed offer and reporting scramble.
Is the penalty automatic?
Penalties are assessed by the IRS based on offers and reporting. We help make sure your data tells an accurate story.
General information, not legal or tax advice. Confirm the rules that apply to your agency with your attorney or tax advisor.
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