IRS Health Care Tax Tips and Reminder about the Premium Tax Credit for 2014 Returns
March 5, 2014
Federal Appeals Court Rules Against IRS on Regulation of Tax Return Preparers
February 19, 2014
Additional Tax (Penalty) for Not Having Health Insurance for 2014
February 12, 2014
New IRS Get Transcript Online Tool and Reminders of Other Useful IRS Tools
January 29, 2014
What is a Full-Time Equivalent Employee?
In order to determine whether an employer is a large employer for purposes of the Affordable Care Act, both full-time and part-time employees are used to determine the 50 employee threshold.
Here is how each category of worker is used in the calculation of the total number of full-time equivalent employees an employer has for each month of the year:
- Full-Time (Employees that work at least 30 hours per week in any month) - Counted as one full-time employee.
- Part-Time – Calculated by taking the hours worked by all part-time employees in a month and dividing that amount by 120.
- Seasonal – Not counted in the calculation for those working up to 120 days in a year.
For variable hour employees the IRS has issued Notice 2012-58 which gives employers guidance on how they may classify these employees through the end of 2014.
See IRS Notice 2011-36 for more details on the definition of a