Tuesday, September 29, 2015

Special IRS Provision for Determining Workforce Size for 2015 Tax Year

Dave Kyllo 

Under the Affordable Care Act, certain employers -- called applicable large employers – are subject to the employer shared responsibility provisions. Whether you are an applicable large employer, and are therefore subject to the employer shared responsibility provisions, depends on the size of an employer’s workforce.

Employers must determine each year – based on their average employee count for the 12 months of the prior year – whether they are an applicable large employer for the current year. However, for 2015, an employer may measure over any consecutive six-month period during 2014, rather than measuring all 12 months of 2014. Information about this transition relief is available here.

This is significant because for 2015, employers with fewer than 100 full-time employees, including full-time equivalent employees, in 2014 will not be subject to an employer shared responsibility payment if they meet certain conditions. Question 34 on the employer shared responsibility employer shared responsibility provision questions and answers page on IRS.gov/aca provides more details regarding these conditions.

To determine whether your organization is an applicable large employers, see Determining if an Employer is an Applicable Large Employer.

For more information on the employer shared responsibility provisions in general, see IRS.gov/aca. Go here to learn more about AHCA/NCAL’s Insurance Solutions “Member Only” health benefit program. 

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