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ACA Reporting Guidance For 2016

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Melissa KnowlesMelissa Knowles

If you're panicking over the reports the Affordable Care Act (ACA) requires your business to produce this month, you're not alone. We've received numerous questions over the past few months from clients and blog readers. In an effort to make the process easier, we've prepared the handy guide that follows.

How do I know what size employer I fall under? For some, it's very clear that you're a small business. You have ten team members (both full- and part-time) at any given point in the year. For others, it can get a bit cloudy. Here's what the ACA says about your business size:

  • Small employers are those with fewer than 50 FTEs.
  • Applicable large employers are those with at least 50 FTEs.

First, you'll need to determine how many full-time equivalent (FTE) employees you have. Start by counting all full-time (30+ hours per week for at least 120 days) employees you had at the height of your employee count for the year (if your number of staff members/payroll has fluctuated). Next, calculate your FTE employees (employees who worked less than 30 hours per week for at least 120 days of the year). Take the payroll data from several payrolls throughout the year and do the following:

  • Add up all part-time employee hours (for those working or expected to work 120 or more days).
  • Divide it by 30.
  • Add that number to your full-time count, and you have your FTE number. Look at several payrolls and go with the highest. The IRS has a calculator to help with this: www.healthcare.gov/shop-calculators-fte

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