Think you’re not a “large employer” for Obamacare?
The new Affordable Care Act (commonly called “Obamacare”) requires many things from employers who are deemed “large employers”, but there is a great deal of confusion about what exactly constitutes a large employer.
The number of employees is actually based on a calculation to determine the full-time equivalent (FTE) employees for a company. For 2014 and 2015, you are considered a large employer if you have 100 full-time equivalent employees or greater. In 2016, that number drops to 50. However, our firm has found that many employers have not accurately determined if they have 100 full time equivalent (FTE) employees or not. Many times, seasonal workers, part-time employees and even volunteers and 1099 subcontractors can be included in this count. Additionally, in certain situations, employees from multiple companies with common ownership can also count towards the magic 100 FTE number.
If you have questions about whether or not your company is required to comply with the large employer mandates, please give one of our CPAs a call at 770-478-7424.