Thursday, September 15, 2016

How the Size of Your Workforce Affects Your Responsibilities


Two parts of the Affordable Care Act apply only to applicable large employers. These are the employer shared responsibility provisions and the employer information reporting provisions for offers of minimum essential coverage.   Whether an employer is an ALE is determined each calendar year, and generally depends on the average size of an employer’s workforce during the prior year.

How to Determine Workforce Size

To determine your workforce size for a year, you add your total number of full-time employees for each month of the prior calendar year to the total number of full-time equivalent employees for each calendar month of the prior calendar year and divide that total number by 12. If the result is 50 or more employees, you are an applicable large employer.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

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