With the holidays approaching and many employers hiring temporary help, the IRS has provided a tax tip for employers who use seasonal or holiday workers.
An employer’s size, for Affordable Care Act purposes, is based on the number of its employees. An employer who has at least 50 full-time/full-time equivalent employees on average during the prior year is considered an applicable large employer (ALE) for the current year. An ALE must comply with ACA requirements.
An exception to ALE status for the year applies if the employer’s workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, if the employees in excess of 50 during that period were seasonal workers. A seasonal worker is defined as an employee who performs labor or services on a seasonal basis, or retail workers employed exclusively during holiday seasons.
The tax tip can be accessed here.
