Determining Full-Time Employees Under the Affordable Care Act

This week, we’ve been talking primarily about how to properly calculate the amount of full-time equivalent employees (FTEs) you have working for you and their total number of hours worked as well as average annual wages as directed by the IRS. But as you begin looking at your employees, you may find yourself asking if there are certain workers that you should consider in your totals. So today we’re going to take a look at whether or not certain employees should be included in your total full-time employee count.

Seasonal Workers
When calculating your employees’ hours, seasonal workers generally will not factor into your total FTE count or average annual wage. Seasonal workers only perform labor or provide services on a seasonal basis, like retail workers who’re employed exclusively during holiday seasons. According to the IRS, it’s up to you to determine by a “reasonable, good faith interpretation of the term ‘seasonal worker’” who your seasonal workers are. Just keep in mind that if your seasonal worker provides services for more than 120 days during the year, they will need to be included in your total count.

Part-time Employees
Unlike seasonal workers, part-time employees are included in your total FTE count and average annual wage for the tax year. So include them when you’re tallying up your employees’ hours to determine how many FTEs you employ.

Leased Employees
Leased employees, like temps, are those employees you have who aren’t employees of your company but are providing services for your company through an agreement you’ve made with the organization who leases their services. When you calculate your FTE total and average annual salary, you will need to include your leased employees.

E-filing with ExpressIRSForms
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