2015 ACA Transition Rule for Determining ALE Workforce Size

Notice 2013-45, issued by the IRS on July 29, 2013, is effective for 2015 and provides transition relief allowing an employer to use any consecutive six-month period during 2014 to measure its workforce size to determine applicable large employer status and full-time employee count for 2015 (but not for any subsequent year).

Rather than being required to use the full twelve months of 2014 to measure whether it has 50 full-time employees (or equivalents), an employer may measure during any consecutive six-month period (as chosen by the employer) during 2014. For example, an employer could use a period of at least six months through August 2014 to determine its applicable large employer status and, if it is an applicable large employer, the period from September through December 2014 to make any needed adjustments to its plan (or to establish a plan).

For periods on or after January 1, 2016 (or, if applicable, for any period after the last day of the 2015 plan year) the transition relief for 2015 generally is not available.

For the complete Q & A visit the IRS Employer Shared Responsibility Provisions Under the Affordable Care Act webpage at www.irs.gov. You can also visit the IRS webpage “Determining if an Employer is an Applicable Large Employer”.

Source: IRS.gov  |  2015 © Copyright Payroll Masters

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