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Friday, May 2, 2014

IRS regs out for employers being hit by Obamacare. Reading this full article - follow link - may help employees understand how their jobs may be impacted.

An employee is considered a "full-time employee" for purposes of this calculation if the employee performed on average at least 30 hours of service per week for a calendar month in the preceding calendar year (or an equivalent of 130 hours for the month). Any employee who was not employed on a full-time basis must be taken into account in determining the number of FTEs of an employer. The number of FTEs is determined for each calendar month by aggregating the number of hours of service for each FTE (up to a maximum of 120 hours for any employee) and dividing that number by 120.
  • Hours of Service: An employer must count actual hours of service for hourly employees. For non-hourly employees, an employer must use one of three methods: (a) actual hours, (b) days-worked equivalency, or (c) weeks-worked equivalency. If the days-worked or weeks-worked equivalencies are used, the hours calculated using those methods must generally reflect the hours of service actually worked.
    An employee’s hours of service include: (a) each hour for which an employee is paid or entitled to payment for the performance of duties for the employer, and (b) each hour for which an employee is paid or entitled to payment by the employer on account of a period of time during which no duties are performed due to vacation, illness, injury, incapacity, disability, jury duty, military duty or leave of absence (without regard to the length of the unpaid service).
    An employee's hours of service do not include hours of service worked outside the United States.
The final regulations apply to common law employees and include special rules addressing controlled groups, affiliated service groups, successor and new employers, seasonal workers and new employees.