So when counting up the hours of your employees, what hours do you need to take into consideration? Well, obviously just the hours the employee worked, right? Sort of. An employee’s hours of service include each hour for which the employee is paid and the hours for which the employee is entitled to payment but no job duties are performed. These hours can include:
- Paid Family and Medical Leave of Absence (FMLA)
- Vacation days
- Sick days
- Jury duty
- Military duty
- Volunteer hours
- Work study program hours (performed by students, interns)
- Religious Orders
- In other words, you don’t need to count service hours for someone “subject to a vow of poverty” who is performing the duties usually required of an active member of the order.
- This exception is only used in calculating full-time status, not ALE status.
- Hours paid with foreign-source income
- By calculating the actual hours of service each month for each employee (this may be more difficult for salaried employees)
- By totalling the number of days each month the employee did eight (8) hours of work
- By totalling the number of weeks each month the employee did 40 hours of work
You can find more information for determining the hours of those who are difficult to identify or track (such as adjunct faculty, or those with layover or on-call hours) here.
Once you’ve determined your employees’ hours of service, it’s time to file those ACA Forms 1094 and 1095. You can do that through www.ExpressIRSForms.com. Simply create a free account to get started. If you need help or have any questions, give us a call at (704) 684-4751, Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT. We’re also available 24/7 through email: support@ExpressIRSForms.com.
Looking for something a little less hands on? Try our full-service e-filing option, ExpressACAForms.