What is a part-time equivalent as it pertains to the ACA? The IRS has ruled that the formula to find out what your part-time equivalents will be is as follows; You take the total number of part time employees and multiply it by the total up the hours for the month they all worked and divide by 120. So to give a real example, if a company has 8 part-time employees and the total of their hours worked per month is 85 hours you would multiply 8 times 85 which equals 680 hours. Then you divide the 680 hours by 120 and you get 5.66 employee equivalents. You would then add that to you total of full-time employees (those working 30 hours a week or more) and you would have the total number of employees in that company.
This will need to be done on a regular basis if you are concerned about the size of your company moving over the 50 employee mark. If you are over 50 employees or you offer every employee affordable health coverage if they work 30 hours or more a week, then you will not need to calculate part-time equivalents.
If you have any questions on the this or anything else that has to do with health insurance or life insurance please feel free to call us at 714-680-5900 or email us at info@ansainsuranceservices.com .
If you would like to receive our newsletter, you may email us and we will add you to our list.
No comments:
Post a Comment