Happy holidays! If your company hires temporary help during the busy weeks leading up to holidays, or if you hire seasonal workers at other times during the year, you may find yourself subject to the rules of the Affordable Care Act (ACA) that govern “applicable large employers.” But there is an escape for many employers.
First, while there is much talk about repealing and replacing “Obamacare” once President-elect Trump takes office, the Affordable Care Act currently remains the law of the land. If you employ at least 50 full-time employees (including full-time equivalent employees) on average during the year, you are considered an applicable large employer. This involves shared responsibilities that exceed those for smaller companies, including extensive documentation and reporting requirements.
Do seasonal employees count toward the 50 full-time employee count? Yes and no. There is an important exception built into the ACA rules. If your workforce meets or exceeds 50 full-time workers for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were temporary seasonal workers, your company will not be considered an applicable large employer.
The Internal Revenue Service (IRS) provides a very helpful FAQ page to help employers define full-time workers and seasonal workers.
If you have additional questions about the status of employment, or any other issues surrounding the Affordable Care Act, please contact Gray, Gray & Gray at (781) 407-0300.