Employers that are hovering around 50 employees, are you a large group (subject to penalties) or small group (penalties do not apply)?
Employers will determine each year, based on their current number of employees, whether they will be considered a large employer for the next year. If on average, your group has more than 50 employees each month in 2013, then the shared responsibility provisions will apply to your group.
To determine if you are a large employer you need to count your employees for each calendar month in 2013.
To determine if you are a large employer you need to count your employees for each calendar month in 2013.
1) How many full time employees do you have working 30 or more hours a week?
2) How many full time equivalent employees do you have? A full time equivalent is how many full time employees your part-time employees add up to. To determine this, add the total hours that your part time employees worked in a month and divide that by 120.
3) Add the total of steps 1 and 2 for each month of 2013, divide by 12. If this average exceeds 50, then you may be a large employer.
3) Add the total of steps 1 and 2 for each month of 2013, divide by 12. If this average exceeds 50, then you may be a large employer.
For those employers that may be close to the 50 full-time employee (or equivalents) threshold and need to know what to do for 2014, special transition relief is available to help them count their employees in 2013.
For more information see the Q & A at the IRS website regarding Employer Shared Responsibility Provisions Under ACA http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act
