Storm Chaser- Seasonal Workers/Employees

Posted on Posted in ACA Reporting, Alerts, Health and Welfare Compliance

Subject:  Seasonal Workers/Employees                  Date:  May 16, 2019

The 2019 summer months are here!

Employers that hire Holiday Help and any Seasonal Help for that matter, need to understand the ACA rules around Seasonal “Workers” and Seasonal “Employees”

As an employer, your size – for purposes of the Affordable Care Act – is determined by the number of your employees. If you hire seasonal or holiday workers, you should know how these employees are counted under the health care law.

Employer benefits, opportunities and requirements are dependent upon your organization’s size and the applicable rules. If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, you are an ALE for the current calendar year.  However, there is an exception for seasonal workers55. If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, your organization is an ALE.

Here’s the exception

If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.

The terms seasonal worker and seasonal employee are both used in the employer shared responsibility provisions, but in two different contexts. Only the term seasonal worker is relevant for determining whether an employer is an applicable large employer subject to theemployer shared responsibility provisions11.  For information on the difference between a seasonal worker and a seasonal employee under the employer shared responsibility provisions see the IRS’s Questions and Answers page22.

 The IRS has issued helpful information to assist employers

See the Determining if an Employer is an Applicable Large Employer11 page on IRS.gov/aca for details about counting full-time and full-time equivalent employees. You can also see ourHealth Care Law: Highlights for Applicable Large Employers11 video on the IRS YouTube channel’s Health Care playlistIRS.gov/aca also has information that can answer your employees’ questions about the health care law.

If you should have any questions, please do not hesitate to reach out to your Senior Benefits Consultant or myself directly at lallen@relphbenefitadvisors.com 1-800-836-0026 x230 or 585-415-0448.

Lisa C. Allen, CAPPP, CHRS, CFC, CAS

This StormChaser is a periodic publication of Relph Benefit Advisors and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your own advisor concerning your situation and any specific legal question you may have.

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