Tuesday, May 17, 2016

One Employee, Two Employees, Three Employees, Four…

Dave Kyllo

A new tax tip from the Internal Revenue Service (IRS) reminds employers of the importance of knowing how many full-time employees they have because two provisions of the Affordable Care Act – employer shared responsibility and employer information reporting for offers of minimum essential coverage – apply only to applicable large employers (ALEs). Whether an organization is an ALE for a particular calendar year depends on the size of its workforce in the preceding calendar year.

To be an ALE, an employer must have had an average of at least 50 full-time employees – including full-time-equivalent employees – during the preceding calendar year. Employers average the number of their full-time employees, including full-time equivalents, for the months from the previous year to see whether they are considered an applicable large employer. So, for example, employers will use information about the size of their workforce during 2016 to determine if their organization is an ALE for 2017.

The IRS tax tip offers helpful links and information on how to determine whether an employee is full-time.

Concerned about rising employee health benefit costs? Know that AHCA/NCAL members are saving money on their employee health benefit programs through AHCA/NCAL Insurance Solutions. One not-for-profit member is saving more than $2,100 annually per employee. AHCA/NCAL Insurance Solutions may be able to save you money too. For more information about health plan options available through AHCA/NCAL Insurance Solutions, contact Dave Kyllo at 202-898-6312 or Nick Cianci at (202-898-2841) or email us at ahcainsurancesolutions@ahca.org.   

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