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It’s important to know that certain affiliated employers with common ownership or that are part of a controlled group under IRS tax rules will need to add together their total number of employees to determine whether they meet the threshold of 50 or more full-time or full-time equivalent employees and are therefore subject to Employer Shared Responsibility.
If your workforce equals or exceeds 50 full-time or full-time equivalent employees (counting your seasonal workers) for no more than four calendar months (treated as the equivalent of 120 days) in a calendar year, and the number of full-time/full-time equivalent employees would be less than 50 during those months if seasonal workers were disregarded, then you are exempt from the Employer Shared Responsibility rules.
= Full-Time Employees + ( Total hours of service / 120)
= 12 + ( 20 / 120 )
You are subject to Employer Shared Responsibility if you average 50 or more Full-Time/Full-Time Equivalent employees per month for the prior calendar year. However, for 2015 only, there is transition relief for businesses with 50 to 99 Full-Time/Full-Time Equivalent employees: Businesses of this size are not subject to the Employer Shared Responsibility rules in 2015 provided they can meet certain certification requirements, including that they did not reduce their number of employees or employees’ hours in order to qualify for the transition relief. For more information on these requirements and the transitional relief, visit IRS.gov/aca .For more details on how to calculate your number of Full-Time/Full-Time Equivalent employees for the Employer Shared Responsibility rules, refer to this document.
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