The Affordable Care Act (ACA) requirements put a burden of responsibility on many employers. The Employer Shared Responsibility Provisions imposed by the ACA require employers with a particular number of employees to offer affordable health coverage. Making these decisions may not be easy for employers, yet are necessary for avoiding noncompliance penalties. Here is one valuable resource for helping you determine your obligations.
As described more thoroughly in “Questions and Answers on Employer Shared Responsibility 
Provisions Under the Affordable Care Act,” posted on IRS.gov, the IRS and Treasury released the final regulations on the Employer Shared Responsibility provisions under Section 4980H of the Internal Revenue Code. This article provides answers to many common questions, including ‘Which Employers are Subject to the Employer Shared Responsibility Provisions.’ The answer to which, in short, is those employers with at least 50 full-time employees or full-time equivalents (FTE), which qualifies that employer as an applicable large employer (ALE). A full time employee is defined as working at least 30 hours per week. For example, if you have 20 employees working 15 hours per week on average, plus 40 full-timers, then you have an equivalent of 50 FTEs. However, that isn’t the end of your FTE calculations. Seasonal workers must also be considered. The Secretary of Labor defines seasonal workers as those employees that provide labor or services exclusively on a seasonal basis. For example, workers that are employed specifically for a busy holiday season or another busy time of year. As such, if your workforce exceeds 50 full time employees and FTE for 120 days or fewer during the calendar year, and the employees in excess of 50 were employed no more than 120 days and are considered seasonal workers, then you are not considered an ALE.
Are you thoroughly confused? No problem, you aren’t alone. Determining employer status and who’s responsible for ACA compliance is complicated. Contact the BTerrell Group for support with determining who’s responsible for ACA compliance and, if that’s you, how you can use today’s more powerful business solutions to streamline data capture and reporting obligations, while minimizing the risk for penalties.
By BTerrell Group, an Intacct Premier Partner and Sage ERP Partner
Keywords: Affordable Care Act, Employer Shared Responsibility Provisions, affordable health coverage, avoiding noncompliance penalties, determining employer status, responsible for ACA compliance, streamline data capture and reporting obligations, minimizing the risk for penalties, Intacct Premier Partner, Sage ERP Partner
866.647.2611