How Seasonal Workers Impact Your Workforce Size

July 25th, 2016 by admin

How many people does your organization employ? Are you sure? This has become an increasingly complex and challenging issue as benefits, opportunities and requirements for the Affordable Care Act depend on the number of employees. If you have more than 50 full-time employees, including full-time equivalent employees, on average during the prior year, you are an ALE – Applicable Large Employer – for the current calendar year.

But, as the IRS reminds, there is an exception: If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.

The terms seasonal worker and seasonal employee are both used in the employer shared responsibility provisions, but in two different contexts. Only the term seasonal worker is relevant for determining whether an employer is an applicable large employer subject to the employer shared responsibility provisions.

For information on the difference between a seasonal worker and a seasonal employee under the employer shared responsibility provisions see the IRS’ Questions and Answers page.

The ACA requirements continue to challenge employers, and Cohen Greve partners work with our clients to help them navigate these complex issues. If you have any questions about this and related issues, please call Cohen Greve & Company at 516-877-1900 and ask to speak with a partner.

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